STR: Mexico 2019 hotel performance
HENDERSONVILLE, Tennessee—Mexico’s hotel industry reported negative performance results during 2019, according to data from STR.
Compared with 2018:
- Occupancy: -2.6% to 61.3%
- Average daily rate (ADR): -2.6% to MXN2,204.78
- Revenue per available room (RevPAR): -5.1% to MXN1,351.58
While not far from the long-term historical average in the country, STR analysts note that the absolute occupancy was the lowest for Mexico since 2013. The drop in occupancy came as a result of healthy supply growth (+3.1%) and softened demand (+0.5%) that was likely influenced by safety concerns that led to U.S.-issued travel advisories, excessive seaweed in the Mexican Caribbean and the dissolution of the government-run tourism organization. Despite the lower demand growth, 2019 was the 10th consecutive year of an increase in the metric. Economic factors are showing reasons for optimism in 2020, however, which could point to higher demand.
Among STR’s defined markets for the country, Mexico Central North experienced the largest decrease in occupancy (-5.1% to 57.9%). Based on number of hotels, the largest cities included in this market are Guadalajara and Puerto Vallarta.
The Yucatan Peninsula registered the only double-digit decline in RevPAR (-11.5% to MXN2,208.23), due primarily to the steepest drop in ADR (-9.9% to MXN3,202.85).
Mexico City posted the only other decrease in ADR (-1.8% to MXN2.249.97), which resulted in the second-largest drop in RevPAR (-4.4% to MXN1,480.53).
Mexico Central South saw the only rise in occupancy (+2.3% to 52.8%) and the highest jump in RevPAR (+4.3% to MXN608.48). The highest hotel counts in this market belong to Oaxaca and Acapulco.
Mexico Northwest reported the largest lift in ADR (+3.9% to MXN2,832.07), which drove the only other increase in RevPAR (+0.8% to MXN1,621.70). The largest cities included in this market are Monterrey, Saltillo and Tampico.
Additional Performance Data
STR’s world-leading hotel performance sample comprises 67,000 properties and 9.0 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
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