The affiliation agreement announced Wednesday at the annual UCLA Extension Hotel Industry Investment Conference here calls for 13 hotels and resorts operated in Mexico by Hoteles Camino Real SA de CV to become part of Hilton's Hhonors guest-reward program and to receive support from Hilton's worldwide sales and reservations network. The agreement also covers a 14th property owned and operated by Hoteles Camino Real--the 359-room Camino Real El Paso in Texas--which will also soon become a Hilton franchise.

Terms also call for the Mexican group, commonly called HOCASA, to spend between $40 million and $50 million over the next 26 months on the entire Camino Real hotel portfolio to meet Hilton brand standards prior to rebranding. The deal will more than double Hilton's current representation in Mexico by giving it 21 hotels with 5,190 rooms.

William B. Fortier tells GlobeSt.com that Hilton will have no immediate equity interest in the properties, but will immediately begin making money from the deal by collecting a fee for booking reservations and providing other services. Fortier also says his company will continue looking for more deals in Mexico and even farther south. "This is a terrific affiliation agreement, but it doesn't preclude us from pursuing other opportunities down there," he says. Hilton already has nine Mexican properties and is developing about a half-dozen others, he adds.

Most of the properties involved in the deal announced Wednesday already enjoy sterling reputations and a steady core of US customers, says Juan Manuel Perez Gomez, Camino Real's CEO. Two of the properties--the 381-room Camino Real Cancun and the 83-unit Camino Real Puerto Vallart--are on Conde Nast Travelers Magazine's prestigious Gold List.

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