MEXICO |
Grupo Posadas. On 27 June, Mexico's largest hotel chain Grupo Posadas announced it had contracted British bank, Rothschild, as its financial adviser as it is experiencing financial difficulties. The 2010 financial report of the Posadas Group, which operates over 100 hotels in Mexico, Brazil, Argentina, Chile and the US, revealed that it has been badly affected by low occupancy rates in Mexico as a result of the surge in violence affecting the country. Local newspapers report that the company currently run by Gastón Azcárraga Andrade, a member of the economically powerful Azcárraga family clan, is facing a M$9.5bn (US$809m) debt and has little chance of obtaining more credit and so an outright sale appears to be its best option. However, the company has issued a statement in which it denied that it was actively looking for buyers; but that it was seeking to secure a US$50m capital injection from its main investors as "an alternative to other options aimed at strengthening capital structure". The statement also pointed out that the company was open to evaluating other options to raise more capital, including public offerings or a possible buyout. It is rumoured that US chain, Hilton, Spain's Melía, and France's Accor are all interested in acquiring the company which operates the Caesar Park and Caesar business hotels in South America and the Fiesta Americana and Fiesta Inn.
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