Despite the wave of drug-related crime and killing in Mexico, hotel investors still see the country as a viable option for hotel investment, according to this report from Bloomberg.
In July the State Department issued a warning to travelers regarding the high number of kidnappings and disappearances in Mexico. It also cautioned tourists about gun battles.
But the coastal areas of the country tend to see less violence, and hotel investors feel confident about the outlook for new properties. Hyatt Hotels, partnering with Playa Hotels and Resorts, will open up its first two all-inclusive resorts. Starwood and La Quinta are also expecting to open several properties across the region in the next several years.
Ricardo Suarez, a vice president of acquisitions for Starwood, told Bloomberg: “Security issues — perceived or real — travelers pay attention to, and they can impact travel. But there is such strong economic growth in the country, it’s driving domestic travel and demand from the U.S. and, more recently, also from places like Europe, Russia and Asia.”
More over on Bloomberg.
