Hotel Industry in Mexico Reports Negative Results for Q3 2019

Rendering of the Caesars Palace Luxury Resort Coming to Puerto Los Cabos, Baja, Mexico
Hotel Industry in Mexico Reports Negative Results for Q3 2019

Mexican hotel occupancy decreased 3% to 60.3% in the third quarter, and a 3.4% ADR decrease to 1,928.43 Mexican pesos ($100.97) drove RevPAR down 6.3% to 1,162.06 pesos ($60.85).

Mexico’s hotel industry reported negative performance results during Q3 2019, according to data from STR.

Compared with Q3 2018:

• Occupancy: -3.0% to 60.3%
• Average daily rate (ADR): -3.4% to MXN1,928.43
• Revenue per available room (RevPAR): -6.3% to MXN1,162.06

The absolute occupancy level was the lowest for any Q3 in the country since 2013 due to an influx of new supply and lack of demand (-0.1%) growth.

Among STR’s defined markets for the country, Mexico Central South experienced the only rise in occupancy (+3.5% to 54.4%) and the second-largest jump in RevPAR (+4.5% to MXN607.95).

Mexico Northwest posted the largest lift in ADR (+5.0% to MXN2,262.61), which resulted in the highest increase in RevPAR (+4.7% to MXN1,262.11).

The Yucatan Peninsula registered the only double-digit declines in ADR (-12.2% to MXN2,703.18) and RevPAR (-15.4% to MXN1,770.03).

Mexico Central North saw the largest drop in occupancy (-5.8% to 57.8%).

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