This year promises to be a record-breaking
one for Fiesta Inn. The Mexican hotel chain, which is a division of
Grupo Posadas, plans to open more hotels this year than in the past
two years combined.
In 2005, Fiesta
Inn opened five hotels; last year, the chain brought three new
properties online. This year, nine properties will open their
doors, adding about 1,162 hotel rooms to Fiesta Inn's
"The strategy for
the growth of Fiesta Inn is very clear and determined," said Javier
Barrera, chief marketing and technology officer for Grupo Posadas.
"Besides [the hotels planned for 2007], there are plans to open
from 10 to 20 more hotels in Mexico."
studies are currently under way to determine new markets where the
brand could be successfully introduced, especially in
travelers account for 81% of the brand's clientele, said
could be achieved within the next five to nine years, depending on
the results of these marketing studies," he said.
Fiesta Inn hotels
usually have 120 to 160 rooms.
occupancy rate is 65%, according to company figures.
In 2007, Fiesta
Inn plans to open hotels in Cuernavaca, Morelos; Ciudad Obregon,
Sonora; Uruapan, Michoacan; Monterrey Cintermex, Nuevo Leon; and
Tuxtla Gutierrez, Chiapas, among other cities.
He said the brand
is working on developing synergies with Mexicana Airlines, which
Grupo Posadas bought in 2005.
noted that there is some cross-pollination between Fiesta Inn and
its sister brands, especially Fiesta Americana.
especially with loyal guests, when they arrive in a destination
where their usual brand, Fiesta Americana, has no presence, they
stay at a Fiesta Inn because it has the attention and service they
are familiar with," he said. "And most of the time, Fiesta Inn is
among the best hotels in that destination."
However, the two
brands are distinct and do not target the same type of
Fiesta Americana guests stay with the brand or a [similar]
competitor when [the Fiesta Americana hotel] doesn't have available
rooms," Barrera said. "This is because the hotels and guest
experience is different within the [two Grupo Posadas] brands. They
are built and addressed to different targets."
Fiesta Inn used
to be the third-largest hotel brand [in Mexico]," Barrera said. "It
was seven percentage points away from being the second brand four
years ago. During the last two years, it has been growing, and now,
it shares second place."
The Fiesta Inn
expansion isn't the only growth area for Grupo Posadas. The
company, which operates about 20% of Mexico's tourist-class hotel
rooms, is introducing additional brands to target different
In 2006, the
company announced plans for Lat 19, a five-star brand aimed at
design-conscious business travelers. News about specific openings
has yet to be released.
Already under way
is the One Hotel brand, which opened its first property in
Monterrey in February. This economy brand aims to attract
price-conscious travelers who still want amenities and consistent
Rates at the
Monterrey property start at about $50 per night and include
continental breakfast. All One Hotels have guest laundry facilities
and free wireless Internet, coffee and parking.
Plans call for
opening a total of 50 One Hotels by 2010 in business, industrial
and tourist destinations.
The next openings
are scheduled for Acapulco, Coatzacoalcos, Playa del Carmen, Tepic,
Durango and Morelia.
For more on
Fiesta Inn, visit www.fiestainn.com.
To contact reporter Mark Chesnut, send e-mail [email protected].