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STR: Mexico hotel occupancy falls during Q2 2018

July 31, 2018 Hotel Trends No Comments Email Email

Mexico’s hotel industry reported lower occupancy levels but growth in room rates during Q2 2018, according to data from STR.

Compared with Q2 2017:

  • Occupancy: -3.2% to 63.5%
  • Average daily rate (ADR): +1.3% to MXN2,260.32
  • Revenue per available room (RevPAR): -1.9% to MXN1,436.02

STR analysts note that Q2 of last year was the strongest on record for demand and occupancy. Beyond that difficult-to-match comparison, there have been indications in recent months that the U.S.-issued travel advisories and concerns over crime have caught up to the hotel industry in certain parts of the country.

Among STR’s defined markets for the country, Mexico Northeast registered the largest performance increases across the three key metrics: occupancy (+5.2% to 67.4%), ADR (+3.6% to MXN1,275.10) and RevPAR (+9.0% to MXN859.86). Based on number of hotels, the largest cities included in this market are Monterrey, Saltillo and Tampico.

Mexico City was the only other of the six STR-defined markets to show growth in occupancy (+3.7% to 68.8%).

Mexico Central North saw the steepest decline in occupancy (-7.5% to 59.3%). This market includes Guadalajara and Puerto Vallarta.

Mexico Central South reported the only decrease in ADR (-1.1% to MXN1,080.01) and the largest drop in RevPAR (-7.8% to MXN568.84). The highest hotel counts in this market belong to Oaxaca and Acapulco.

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