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Mexico hotel performance for Q1 2017

April 29, 2017 Hotel Trends No Comments Email Email

Mexico’s hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2017, according to data from STRhttp://www.rembrandtbkk.com/

Compared with Q1 2016:

  • Occupancy: +1.2% to 64.7%
  • Average daily rate (ADR): +5.7% to MXN2,630.59
  • Revenue per available room (RevPAR): +7.0% to MXN1,701.21

“Performance growth continues in Mexico due to a strong dollar and reduction in fuel prices,” said Fatima Thompson, STR’s associate director of business development, hotels. “These factors will continue to attract foreign travelers to Mexico’s popular destinations, provided there is not a major shift in U.S. and Mexico diplomatic relations. That situation certainly warrants monitoring as to what impact it may have on tourism and hospitality.”

Among key markets in the country, N.W. Mexico experienced the largest increases in occupancy (+4.7% to 62.1%) and RevPAR (+15.0% to MXN1,912.27).

“2016 was the first full year that Luxury resorts in Los Cabos were back up and running after being forced to close due to Hurricane Odile in 2014,” Thompsons said. “Performance figures from the first quarter of 2017 are indicative of stability for that market.”

Mexico City posted the only double-digit increase in ADR (+10.0% to MXN2,643.24).

Overall, all five of Mexico’s key markets as defined by STR reported increases in ADR and RevPAR.

Central Mexico was the only market to see a decrease in occupancy (-0.5% to 59.1%).

Among class segments, Upper Upscale reported the largest increases in each of the three key performance metrics. Occupancy rose 4.7% to 70.8%, ADR was up 13.9% to MXN3,464.77 and RevPAR grew 19.3% to MXN2,452.84.

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