Camino Real Mexico City Renovates For Competitive Edge

MEXICO CITY— Spurred by increased competition, the 714-room Camino Real property here began almost a year and half ago to revamp its look while preserving its authentic Mexican style. The property is now set to begin phase two of its extensive make-over. Approximately $26 million is being invested into the Camino Real Mexico City as part of an aggressive $40 million renovation and expansion program that Camino Real Hotels and Resorts, and its parent Grupo Empresarial, recently launched. The new program is “aimed at restoring the companys status and standing as Mexicos leading luxury lodging name,” noted company officials. According to Vincente Madrigal, sales and marketing director for the Mexico City property, “The hotel opened in 1968 during the time when the Olympic games were held here. In the last 10 years renovations were never concluded. Then when Grupo Empresarial bought Camino Real [in 2000], the company decided to renovate this property.” There were several reasons to make the investment, explained Madrigal. Not only is the property is Camino Reals flagship, but the hotel is very prominent within Mexico City and competition has increased in the area. Madrigal said the company was insistent that all areas be redone. “It was very important to renovate all areas… to keep marketshare in all of our segments: groups and conventions, business travelers, leisure travelers and families,” noted Madrigal. During phase one, the property— which is situated on six acres of private gardens and land in the heart of Mexico City— renovated 400 guestrooms and all of the public areas, including the lobby and lobby bar, all meeting rooms and the main ballroom. When completed, each guestroom— at a cost of $30,000 per room— will feature new furnishings, carpets, light fixtures, marble baths with red Mexican marble, new dual phone lines, high-speed Internet access and satellite TV. The redesign is being directed by Ricardo Legorreta, the propertys original designer. Madrigal said since Legorreta is in charge of the refurbishment, the propertys look will stay true to its original Mexican design in terms of color, furnishings and décor. A Le Cirque restaurant is set to open “sometime in the fall,” added Madrigal. The balance of the rooms will be finished by years end, he said. The cafeteria will be redone now, too, and next year the propertys Mexican restaurant will be redone, with several other restaurants slated for addition. The entire remodeling effort in Mexico City should be completed next year. And while now renovations can be executed without disturbing guests, Madrigal noted in the beginning, “it was little painful.” The hotel had to close off rooms and various public areas, making it a little difficult on the guests, he said. Plus, it hurt the hotels performance. However, “its important to note that were recovering our exact marketshare” now that phase one has been finished, said Madrigal. “The renovations now are completely isolated so guests dont notice.” Year-over-year comparisons show that the renovations appear to be paying off. Madrigal noted that occupancy and RevPAR have both grown this year, while hotels by “Inter-Continental, Nikko and Sheraton” in the propertys competitive set seem to be posting lower occupancy and RevPAR numbers. “Were thinking that well have at least 5% more marketshare than we used to have” when the hotels renovations are finished, noted Madrigal. Meanwhile, renovation efforts are also focused on a number of other Camino Reals key properties, including its Guadalajara and Acapulco Diamante properties. At a total cost of $8 million, all 205 guestrooms and suites at the Guadalajara property will be re-designed with new furnishings, carpets and marble baths. The hotels public areas, including the lobby and meeting rooms, will also be completely refurbished and re-painted. The Acapulco property is set for a re-styling of all 157 rooms and suites including new curtains a