Market Reports

Hotel Industry in Mexico Reports Negative Results for Q2 2019

Mexico's hotel occupancy dropped 3.1% to 61.8% in the second quarter of 2019 while ADR also declined 3.1% to 2,182.69 Mexican pesos ($114.81) and RevPAR dropped 6.1% to 1,349.50 pesos ($70.98).
Rendering of the Caesars Palace Luxury Resort Coming to Puerto Los Cabos, Baja, Mexico
Hotel Industry in Mexico Reports Negative Results for Q2 2019

STR

Mexico’s hotel industry reported negative performance results during Q2 2019, according to data from STR.

Compared with Q2 2018:

  • Occupancy: -3.1% to 61.8%
  • Average daily rate (ADR): -3.1% to MXN2,182.69
  • Revenue per available room (RevPAR): -6.1% to MXN1,349.50

The absolute occupancy level was the lowest for any Q2 in the country since 2013. STR analysts note that supply growth (+3.0%) and lack of demand acceleration (-0.2%) weighed equally on occupancy and hotelier pricing power. Seaweed problems on beaches in Cancun and Riviera Maya could have some impact on demand as did the government’s decision to disband the Mexico Tourism Board. However, the creation of the Consejo de Diplomacia Turística (Toursim Diplomacy Council) should help regain demand in the near future.

Among STR’s defined markets for the country, Mexico Central South experienced the only rise in occupancy (+2.2% to 52.5%) and the largest jump in RevPAR (+5.6% to MXN572.59).

Mexico Northwest posted the largest lift in ADR (+6.3% to MXN2,817.16) and the only other increase in RevPAR (+1.6% to MXN1,648.01).

The Yucatan Peninsula saw the steepest declines in each of the three key performance metrics: occupancy (-5.4% to 68.2%), ADR (-7.3% to MXN3,242.38) and RevPAR (-12.3% to MXN2,210.11).

Mexico City registered the second-largest drop in RevPAR (-7.0% to MXN1,501.11), due primarily to the only other decrease in ADR (-4.3% to MXN2,259.36)

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