Standard&Poor's Ratings Services' 'BB' rating on Grupo Posadas S.A.B. de C.V. (Posadas) reflects the cyclical nature of the lodging industry and the company's geographic concentration in Mexico. These factors are offset by the company's consistent operating performance, manageable debt-maturity schedule, position as the largest hotel operator in Mexico, and diversified hotel portfolio with well-recognized brands. During the 12 months ended March 31, 2008, the company added 1,238 rooms by opening nine new hotels in Mexico, of which the company owns one and eight are under management contracts. This is in line with Posadas' strategy during past years to gradually change its business mix to management contracts, thus minimizing capital requirements. Currently, around 60% of the company's revenues are
