After negotiating a franchise agreement between a Hyatt affiliate and Fideicomiso de Actividad Empresaria, Hyatt Hotels Corporation announced in April that it plans to open the first Hyatt Hotel in Mexico. Located in Mexico City, Hyatt House Santa Fe will be part of the Hyatt-branded extended stay hotel line. Expected to open in 2016, the hotel will be managed by one of Mexico’s leading hotel operators, Grupo Presidente.

The tax implications of an international investment should never undermine the ultimate goal of profitability. The Hyatt Hotels project is a great example of such a perspective put into action. In Mexico, Fideicomiso de Actividad Empresarial is a trust constituted for the purpose of building and managing real estate investments. The trust is comprised by a group of successful Mexican entrepreneurs and businessmen. Grupo Presidente has an impressive track record of running successful commercial establishments across the country.

Working With A Fideicomiso

fideicomiso, hyatt, mexico
Hyatt Joins With Fideicomiso in Mexico

When it comes to the new Hyatt House Santa Fe decision, Hyatt Senior Vice President Pat McCudden explained how much sense the investment made: “It is wonderful to be working with Fideicomiso de Actividad Empresarial and Grupo Presidente to introduce the Hyatt House brand to the Mexican market. This Hyatt House announcement illustrates our goal of becoming the most preferred brand in the lodging segments we serve.”

The introduction of the Hyatt House brand in Mexico is just the beginning. 10 more additional Hyatt hotels in Mexico are already in the works at various stages of development. Myles McGourty, Senior Vice President of Latin America & Caribbean for Hyatt Hotels & Resorts stated, “We believe it is an exciting time for Hyatt in Mexico. As Hyatt seeks to elevate the profile of its brands in Mexico, the recent growth announcements and openings underscore our commitment to Mexico.”

Doing Business Abroad

You do not have to have the power and the presence of the Hyatt Hotel Corporation in order to take advantage of Mexico’s burgeoning economy. For more information about doing business abroad, please contact the international tax consultants at LSL CPAs. We can help ensure that your investment makes sense from a tax perspective in terms of compliance issues, regulatory concerns and financial liability.

Pursuant to U.S. Treasury Department Regulations, any federal tax advice in this article is not intended or written to be used for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

It is important to further note that this article presents only a partial view of the subject matter. It does not claim or attempt to be comprehensive or perfectly accurate. To learn more about doing business abroad, please call LSL CPAs international tax accountant Yana Weaver at 714.569.1000.

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