Marriott to triple its Mexico hotels

Marriott International plans to triple the number of hotels it has in Mexico over the next decade, beginning with the expansion of a 120-room Cabo San Lucas hotel and 139-room Guadalajara hotel.

“I would not be surprised to see half of their unit growth over the next five years come internationally because of the access to capital and the expansion of economies outside the U.S.,” says Rod Petrik, analyst for Stifel Nicolaus. “Hotel supply in the U.S. should be down dramatically over the next three years, so you have a number of economies with higher projected growth and better supply-demand characteristics.”

A deal with Pulso Hotelero to open 36 moderate-priced Fairfield Inns starting in 2011 is expected to increase the number of Marriott hotels in Mexico from 19 to 57 across five of its brands. Marriott International room prices range from $77 to $118 a night.