One of Mexico’s largest hospitality companies, Grupo Posadas has filed for Chapter 11 bankruptcy in the United States.
The measure comes after a failed attempt by Grupo Posadas to restructure the debt it has accumulated over the past year and a half due to the COVID-19 pandemic.
The company has reported that it lost 398 million pesos during the first two quarters of 2021 but seems to have actually made a 32-million-peso profit in Q3.
“Under the conditions of the agreement, Grupo Posadas will be restructuring its debt over the next five years and a half and should become solvent again by 2027,” said the company via a press statement.
Despite its economic woes, Grupo Posadas says that its properties will continue to operate normally.
Grupo Posadas owns, leases, operates, and manages hotels, resorts, and villas across several different brands. As of 2020, the company operates more than 150 hotels with 24,000 hotel rooms.
The company operates several hotels in the Yucatán Peninsula, including the Fiesta Inn and Fiesta Americana in Mérida, as well as the Live Aqua Beach Resort Cancún.
In 2005, Grupo Posadas took control of Mexicana de Aviación, then Mexico’s second largest airline group.
The COVID-19 pandemic has hit Yucatán’s hotel industry particularly hard, with several hotels struggling to make ends meet. Despite this reality, new hotels such as the Residence Inn by Marriott have actually opened for business during the pandemic, banking on a dramatic reversal of fortunes for the industry once the pandemic is under control.
Hotel administrators in Yucatán say they are optimistic. Next month, Mérida’s hotels are expecting a large influx of guests as the city hosts Mexico’s largest tourism industry event, the Tianguis Turistico
The event will take place at Yucatán’s new International Convention Center over three days beginning Nov. 16.