Hotel Industry in Mexico Reports Strong RevPAR Growth for Q1 2017
In the first quarter of 2017, Mexico’s hotel industry reported positive year-over-year results. Occupancy rose 1.2% to 64.7%, while ADR increased 5.7% to 2,630.59 Mexican pesos ($138.88) and RevPAR jumped 7% to 1,701.21 Mexican pesos ($89.81).
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 STR.
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.
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.