U. S. Hotel Chains Leave Cancun

[Jim in Cancun]

Seems the story behind the sale of the Hilton to Iberostar may have even more repercussions for Cancun. The following article from the newly resurrected Noticaribe-that got it from Quequi--says that 2 major factors caused the sale:
1.- the problem of insecurity (actually it is the low occupancy caused by the insecurity)
2.- the inability to deduct the new IETU Mexican tax in the home country of the chain and
3.- stimuli in the U.S. for investments.

These seem to be the reasons why the Westin and Marriott hotels (both) are now up for sale as well. And Fiesta Americana is also on its way out it seems although it is a Mexican chain and has its own set of problems.

So if some other Mexican investors/hoteliers don't step up, the Spanish may conquer Mexico all over again--at least the Spanish hotel chains. They already own about 75% of the hotel inventory in Quintana Roo.
Spanish article below.
-----------------------------------

la inseguridad conjugada con la carga fiscal que representa la imposibilidad de acreditar el impuesto empresarial a tasa única en su país de origen, entre las razones que provocaron la salida de la cadena hilton de cancún, a la que se sumarían los hoteles westin, casa magna y jw marriott, que también han sido puestos a la venta.

Ago
18
2011
CANCÚN, MX.- La inseguridad conjugada con la carga fiscal que representa la imposibilidad de acreditar el Impuesto Empresarial a Tasa Única en su país de origen, así como los apoyos que está ofreciendo el gobierno estadounidense para incentivar la inversión en su país, fueron las razones que provocaron la salida de la cadena Hilton de Cancún, a la que se sumarían los hoteles Westin, Casa Magna y JW Marriott, que también han sido puestos a la venta.

Y es que desde hace algunos meses el dueño del inmueble donde operaba la cadena Hilton decidió vender la propiedad ante la creciente inseguridad que vive el país y trasladar su inversión a Estados Unidos, donde el gobierno ha implementado importantes estímulos para incentivar la inversión, pasos que seguirían otras cadenas estadounidenses, situación que incluso ya fue notificada a los trabajadores, como es el caso de quienes laboran en el Westin operado por el grupo Stardwood Hotels.

A lo anterior se sumarían los centros de hospedaje del grupo Posadas, que cuenta con cinco hoteles en Cancún y Cozumel, los cuales han sido puestos a la venta para evitar el concurso mercantil ante la imposibilidad de cubrir el adeudo que arrastra, cuyo monto al cierre del segundo trimestre de 2011 ascendía a 453 millones de dólares.

De esta manera, Cancún estaría en el camino de convertirse en un "pueblo fantasma" como anticipara hace algunas semanas el presidente de la Asociación Mexicana de Profesionales Inmobiliarios (AMPI) Sección Cancún, Juan Pablo Mirabent Pizarro Suárez, lo cual se frenaría si cadenas hoteleras nacionales entran al quite de las extranjeras y evitar el cierre definitivo de los centros de hospedaje.

En entrevista el director de Turismo Municipal, Máximo García Rocha, reconoció que la creciente inseguridad conjugada con la carga fiscal mexicana es el principal factor que está ahuyentando a las cadenas estadounidenses del país, por lo que es probable que las transacciones se concreten antes de que finalice el año y podrían quedar en manos de empresarios mexicanos. (Fuente: diario Quequi)

[gowick]

This is totally anecdotal, but I was able to get into villas at the Hilton for $55.00 per night on numerous occassions. That is certainly not a high sign of occupancy.

[johndish]

Jim,

In regards to brands the owner of the hotel can cancel his contract and at this point it would make sense to go with an all-inclusive hotel with a more diverse client base. Hilton does a great job but, it was probably not returning the income the hotelier needed. I don't think it is a fact that American hotels are leaving but, that the spanish are so darn good at this market.

[Jim in Cancun]

That is certainly one factor, John. All inclusive is definitely taking over but in the Case of the Marriott, they are opening a JW in the Riviera Maya while selling one in Cancun. It is sad that the perception of insecurity and high taxation of Mexican companies is driving away well known brands though.

[playagrandma]

Originally Posted by Jim in Cancun

That is certainly one factor, John. All inclusive is definitely taking over but in the Case of the Marriott, they are opening a JW in the Riviera Maya while selling one in Cancun. It is sad that the perception of insecurity and high taxation of Mexican companies is driving away well known brands though.

Jim would you happen to know where in the Riviera Maya the JW will be and when its scheduled to open? This is actually exciting news for me since my daughter and son-in-law like to stay at a Marriott. I did a search on Marriott upcoming hotels and could not find any information. Thank you

[Jim in Cancun]

On April 18, 2011 I ósted the following on Tripadvisor.com
"15. Re: Cancun Area News 'N Stuff
Apr 18, 2011, 12:21 PM
Occupancy: It is still (overall) less than 60% and it is Semana Santa when Mexican tourism is big. Occupancy is higher downtown than in the Hotel Zone. Cancun is filling up. about 50% of the Mexican nationals who come to visit at this time of year DO NOT stay in hotels but with friends and family.

Many individual hotels--in general timeshare hotels--have high occupancy this week. Occupancy typically goes down on the Monday after Easter.

Marriott: According to the Marriott website listing of present and future resorts, it says "450-room JW Marriott Hotel Riviera Maya, Mexico (2011)"

So it seems it is scheduled to open this year."

I looked on their website at the time and found it listed as stated above but did not post the link. A similar link on their website does not say that now. Change of plans?

[playagrandma]

Originally Posted by Jim in Cancun

On April 18, 2011 I ósted the following on Tripadvisor.com
"15. Re: Cancun Area News 'N Stuff
Apr 18, 2011, 12:21 PM
Occupancy: It is still (overall) less than 60% and it is Semana Santa when Mexican tourism is big. Occupancy is higher downtown than in the Hotel Zone. Cancun is filling up. about 50% of the Mexican nationals who come to visit at this time of year DO NOT stay in hotels but with friends and family.

Many individual hotels--in general timeshare hotels--have high occupancy this week. Occupancy typically goes down on the Monday after Easter.

Marriott: According to the Marriott website listing of present and future resorts, it says "450-room JW Marriott Hotel Riviera Maya, Mexico (2011)"

So it seems it is scheduled to open this year."

I looked on their website at the time and found it listed as stated above but did not post the link. A similar link on their website does not say that now. Change of plans?

Thanks Jim. I contacted a travel agent who promotes this area heavily. She said that at one time the plans were to build in the RM but have put a hold on that project but no reason has been given. I say darn to that. Looks like the JW in Cancun and I will have to visit there or they come to Playa for a day.

[johndish]

Jim,

With regards to the Marriott and Westin being up for sale neither I don't believe that either of those are owned assets. The Westin might be because of the timeshare component but, Marriott's business model is no bricks and mortar just management contracts. Again I don't think the brands are leaving but, the investors may want out. Hotel management contracts are generally 15-20 years in length.

[mexipat]

I just checked and the JW Cancun is accepting reservations well into the future so it doesn't look as though it is going anywhere. Worth watching, though.

[Jim in Cancun]

I agree that one thing is who owns the property and the "flag" that runs it. For example it looks like the Coral Beach is going to become a Hilton! And the Palce-owned resorts is looking for help with. first the Wyndham chain and now Hard Rock.

Lots of changes and more to come.