5 key points on hotel performance in Mexico, June 8, 2022
ADR driving recovery
When it comes to performance recovery, the average daily rate (ADR) was the most notable metric for most markets around the world. Mexico was no different, with ADR for the first four months of 2022 indexing 15 percentage points higher than the 2019 comparable. Occupancy, on the other hand, was only 89% of pre- 2019 pandemics.
Mexico’s leisure and weekend-oriented markets in general produced the highest rate premiums as of 2019.
Rise in demand in the Mexican Caribbean
The Mexican Caribbean region, which has excelled in balancing restrictions and attracting tourists throughout the pandemic, set a record for nights sold in the period April 2022 to date. Forward STAR forward-looking data shows healthy booking levels for the region over the coming months.
Higher classes, higher growth
High-end hotels in Mexico, particularly high-end through luxury, saw double-digit performance increases over the same period in 2019. This puts these hotel classes beyond the recovery and in territory of maximum performance.
Business travel locations resume
Central business districts and urban sites are catching up on the recovery, but are still waiting for business travel to kick off in a meaningful way. In the first four months of the year, these areas saw weekend demand spikes, especially border towns now that restrictions have been lifted.
Booking data shows booking trends are also reverting to pre-pandemic patterns, with the Mexican Caribbean traveling at 50% future occupancy, 90 days away, with low pick-up changes.
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STR provides premium benchmarking data, analysis and market insights for the global hospitality industry. Founded in 1985, STR operates in 15 countries with North American headquarters in Hendersonville, Tennessee, international headquarters in London, and Asia-Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of online commercial real estate information, analysis and marketplaces. For more information, please visit str.com and costargroup.com.