Tourism April 3, 2021 | 10:40 am

Vuelco: the largest hotel company in the Caribbean is already making profits

One in two AMResorts hotels have stopped losing money and are already making a profit in Mexico, according to Alex Zozaya, Chairman of Apple Leisure Group (ALG), the hotel chain's parent company.

One in two AMResorts hotels has stopped losing money and are already making a profit in Mexico, according to Alex Zozaya, Chairman of Apple Leisure Group (ALG), the hotel chain’s parent company.

“Mexico has been more successful than other destinations. Perhaps half of the portfolio of hotels that we have in the country are already making money, they are in black numbers, they have already made a profit,” he explained to the media during the ceremony of laying the first stone of his resort in Mazatlán.

The manager highlighted that the hotels have suffered from a lack of occupancy and low rates, and an increase in operating costs due to the implementation of health protocols.

Likewise, he explained that in AMResorts ‘all-inclusive’ establishments, direct costs are higher than in city hotels. Everything is prepaid, and restaurants cannot be closed, or services were withdrawn.

“The breakeven point in our hotels is higher. I think it depends on the rate, but it is challenging to earn money if we are below 50%. Now, after passing this point, the business also becomes more profitable,” explained Zozaya.

Finally, he acknowledged that despite the crisis, the chain had maintained its expansion and growth, closing 2020 with about 70 hotels and the forecast of reaching 104 this year.

“The crisis has given us an opportunity for greater growth in the number of hotels. Our history is one of crisis, AMResorts was born on August 1, 2001, 41 days before the tragedy of September 11, and it was precisely that crisis that catapulted growth.”