Mexican hotel chain inks wind PPA

Mexican hotel chain Hoteles City Express SAB de CV (BMV:HCITY) on Monday said it has signed a wind power purchase agreement (PPA) to supply 95% of its portfolio of fully owned, co-owned and leased hotels.

The company, which operates 139 hotels in Mexico, Costa Rica, Colombia and Chile, said the fixed-price, 10-year PPA is for energy that will be generated by wind turbines in the Mexican state of Tamaulipas. It did not specify the contract counterparty.

Hoteles City Express expects the deal to reduce its energy costs by more than 25%. It said that energy expenses currently represent 3.5% to 5% of hotel operation revenues for an established property. The savings will start to be realised in about 12 months.

The wind PPA will also neutralise some 90% of the hotel chain's carbon emissions, according to the announcement.

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