Mexican Hotel Industry Reports a 19.2 Percent Increase in RevPAR
Compared with Q1 2015, the Mexican hotel industrys occupancy dipped 1.9% to 63.8%. However, a 21.6% rise in average daily rate to MXN2,442.49 drove revenue per available room up 19.2% to MXN1,557.11.
The Mexican hotel industry reported mixed results in the three key performance metrics for the first quarter of 2016, according to data from STR.
Compared with Q1 2015, the Mexican hotel industry’s occupancy dipped 1.9% to 63.8%. However, a 21.6% rise in average daily rate to MXN2,442.49 drove revenue per available room up 19.2% to MXN1,557.11.
“The devaluation of the peso combined with a prime season for travel made Mexico an attractive and affordable destination for U.S. travelers,” said Fatima Thompson, STR’s associate director of business development, hotels. “Even with a slight decrease in occupancy, hoteliers were able to raise rates to drive RevPAR.”
Among the key markets in the country, Mexico City (+5.6% to 67.1%) recorded the largest year-over-year increase in occupancy, while the Yucatan Peninsula (-8.2% to 72.7%) experienced the steepest decline in the metric.
N.W. Mexico posted the largest increases in both ADR (+140.9% to MXN2,896.03) and RevPAR (+143.5% to MXN1,739.57).
“Along with demand driven by the devaluation of the peso, the first-quarter performance in N.W. Mexico was up due to the time period it compared with in 2015,” Thompson said. “The effects from Hurricane Odile (September 2014) were still felt on the market’s hotel industry early in 2015.”
All five of the key markets in Mexico reported a year-over-year increase in ADR and RevPAR for Q1 2016.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.