Transat’s First New-Build Hotel Projected To Open NOV 2020
Bruce Parkinson, Open Jaw
Transat CEO Jean-Marc Eustache
As Transat has struggled to make sustainable margins in the tour operating business in recent quarters, CEO Jean-Marc Eustache has stressed the importance of shifting resources into the purchase or development of hotels in Mexico and the Caribbean – where he believes margins of 25-30% can be achieved. It has taken some time, but things are starting to take shape.
During a conference call with investment analysts reporting Q4 and full-year results, Eustache predicted November 2020 as the opening date for a new-build hotel on land the company bought in Puerto Morelos, Mexico, on the Riviera Maya. He says a brand announcement will be made early in 2019.
Eustache says building permits should be in place by April 2019, with construction beginning shortly after. He says the all-inclusive property will encompass 860-900 rooms, with an adult section on one side, family section on the other.
Transat’s initial goal for its hotel division is to develop or purchase 5,000 rooms. Eustache says the company is looking at potential land purchases elsewhere on the Riviera Maya, as well as in the Punta Cana region of the Dominican Republic. He said PUJ is the most likely current candidate due to the project already underway in Mexico.
“We are also looking at a couple of hotels that are for sale, one new and one that could be refurbished. Overall on the hotel side things are going very well,” Eustache said.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.