Compared with Q2 2015, the Mexican hotel industry’s occupancy was mostly flat (-0.5% to 63.3%). However, average daily rate was up 15.8% to MXN2,079.87, and revenue per available room grew 15.2% to MXN1,317.20.
“Performance was pretty similar to the first quarter with a weakened Peso as the main reason behind Mexico’s hotel success,” said Fatima Thompson, STR’s associate director of business development, hotels. “Based on proximity alone, Mexico gains a lot of travelers from the U.S. But a lot of people realize that now is a good time to take advantage of the value, and hoteliers have capitalized with increased rates. It will be interesting to monitor the impact of Brexit on the Peso and ultimately the hotel industry in Mexico.”
Among the key markets in the country, Northwest Mexico posted the largest spike in RevPAR (+52.3% to MXN1,432.36), driven primarily by the country’s largest increase in ADR (+49.2% to MXN2,355.25). Occupancy in the market was up 2.1% to 60.8%.
Mexico City experienced the largest rise in occupancy (+8.3% to 70.7%). That coupled with a 19.9% increase in ADR to MXN2,486.43 pushed RevPAR up 29.8% to MXN1,758.07.
The only decreases in any of the three key performance metrics were reported in the Yucatan Peninsula (occupancy -6.4% to 69.1%) and Northeast Mexico-Monterrey (occupancy -0.2% to 65.6%).
“The country as a whole is such a great deal, it appears as if people are exploring areas outside of the always popular destinations.”