Hotel Industry in Mexico Reports Strong RevPAR Growth – 10.7 Percent – for Q2 2017
During the second quarter of 2017, Mexico’s hotel industry reported occupancy rose 3.1% to 65.7%. ADR increased 7.3% to 2,253.96 Mexican pesos ($127.13) and RevPAR rose 10.7% 1,481.25 Mexican pesos ($83.55).
Mexico’s hotel industry reported positive year-over-year results in the three key performance metrics during the second quarter of 2017, according to data from STR.
Compared with Q2 2016:
- Occupancy: +3.1% to 65.7%
- Average daily rate (ADR): +7.3% to MXN2,253.96
- Revenue per available room (RevPAR): +10.7% to MXN1,481.25
The absolute occupancy level was the highest for any quarter in Mexico since Q1 2006.
“Hotel performance remains strong despite concerns around U.S. and Mexico relations and the recent surge in the value of the peso against the dollar,” said Fatima Thompson, STR’s associate director of business development, hotels. “The favorable exchange rate and incredible value has been a key in driving U.S. visitors to Mexico.”
Among key markets in the country, Central Mexico experienced the largest increases across the three key performance metrics: occupancy (+7.0% to 61.4%), ADR (+13.1% to MXN1,444.51) and RevPAR (+21.1% to MXN886.28).
Overall, three of Mexico’s five key markets as defined by STR recorded a double-digit increase in RevPAR.
N.W. Mexico posted the only other double-digit increase in ADR (+10.1% to MXN2,417.38).
Mexico City was the only key market to report a decrease in each of the three metrics: occupancy (-5.3% to 66.8%), ADR (-1.9% to MXN2,408.48) and RevPAR (-7.1% to MXN1,609.40).
N.E. Mexico-Monterrey experienced the only other decrease in occupancy (-2.9% to 64.2%).
Among class segments, Upper Midscale posted the largest increases in ADR (+12.1% to MXN1,250.22) and RevPAR (+17.7% to MXN824.18).
The Economy class reported the largest increase in occupancy (+6.4% to 63.9%).
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.