Spanish hotel operator RIU has opened its first urban hotel in Mexico in Guadalajara, the capital of the western state of Jalisco, at a cost of $110 million.

The property, the company's second urban hotel in Latin America, will serve business travelers in Guadalajara, which is hosting the Pan American Games in October, Riu Hotels & Resorts executive Pepe Moreno said in a press conference.

"We have a very positive outlook, not just because of the Pan American Games, which is a really important factor, but also long-term due to the activities and business volume in the city," the hotelier said.

The RIU Guadalajara Plaza will house judges and officials during the Oct. 14-30 Guadalajara 2011 Games.

The 43-story hotel has 550 rooms, a penthouse, two restaurants, a bar and a swimming pool.

RIU, which is known for its hotels in beach and resort destinations in 19 countries, launched its business class line in September 2010 with a hotel in Panama City.

Mexico is RIU's main destination in the Americas, accounting for nearly 50 percent of its properties in the region.

RIU is planning to open a third urban hotel in Latin America, with the northern Mexican industrial city of Monterrey among the candidates, Moreno said.

The company posted revenue of $1.53 billion in 2010 and welcomed 3.5 million guests at its more than 100 hotels.