Grupo Posadas hard at work cleaning up its hotels in Cancún and Cozumel

• Damages were limited to equipment, furnishings and decorations
• The company is offering a toll-free number to groups (1-800-345-5094) and individuals (1-800-343-7821) for information concerning leisure and business bookings

Mexico City, October 25, 2005. Grupo Posadas, which is presided over by Gastón Azcárraga Andrade, reported today that its four hotels located in the state of Quintana Roo: Aqua, Fiesta Americana Grand Coral Beach, Fiesta Americana Condesa Cancún, Fiesta Americana Vacation Club Cancún and Fiesta Americana Cozumel Dive Resort, did not suffer any structural damage. Only equipment, furnishings and decorations were effected. Clean-up brigades of hotel staff are hard at work getting things back in order.

In fact, Grupo Posadas plans to have all four hotels in Cancún completely ready for re-opening by December 15th of this year.

For group and individual booking information the company is providing the public with two toll-free numbers, for groups (1-800-345-5094); for individuals (1-800-343-7821) for its Call Center.

In a parallel effort, Grupo Posadas has added its efforts to the priority actions of the authorities, tourist sector, business and restaurant owners, and tourism service providers. The most urgent tasks at hand are to combine resources, recuperate beaches, invest in and get each hotel operating again.

Pablo Azcárraga, Vice President of Operations at Grupo Posadas and President of Mexico’s Hotel Association, has called on Quintana Roo’s tourist sector to join in this enormous endeavor to set priorities and act as quickly as possible.

With 35 years in the hospitality industry, Grupo Posadas currently operates 92 hotels with more than 17,500 rooms in 50 of the top beach and city destinations in Mexico , Brazil and Argentina . Its six brands, Aqua, Fiesta Americana, Fiesta Inn and One Hotels in Mexico, plus Caesar Park and Caesar Inn in South America, make Posadas the largest hotel operator in Latin America. Grupo Posadas has been traded publicly on the Mexican Stock Exchange since 1992 under the ticker name POSADAS . Visit the company’s website at www.posadas.com.

Please visit us at www.fiestamericana.com/groups or call us at 1-800-345-5094.