Mexico Hotel Market 2024

In 2024, Mexico's tourism sector continued its robust post-pandemic recovery, contributing 8.6% to the national GDP and employing over 4.9 million people.

Tourist arrivals reached 27 million, with 22.3 million entering by air – 63% from the U.S. – underscoring Mexico’s continued appeal to international travelers.

This comprehensive market study outlines the main trends, growth segments, and challenges for Mexico’s hospitality sector as of 2024 and forecasts into 2025–2028.

Industry Overview and Economic Impact

• Tourism GDP Contribution: In 2023, tourism accounted for 8.6% of Mexico’s national GDP, returning to pre-pandemic levels. It employed nearly 4.94 million people, representing 9.2% of national employment, with women comprising 51% of the sector.
• Resilience: The data reflects a full recovery from COVID-19 and underscores tourism as a core economic engine for regional development and national growth.

Inventory and Growth

• Hotel Count (2024): 26,911 hotels, up 1.5% from 2023.
• Room Inventory: 899,389 rooms in 2024, up 1% from the previous year.
• Geographic Concentration:
  • Hotel Establishments: 54.1% located in 10 states (e.g., Jalisco, Oaxaca, Quintana Roo).
  • Rooms: 58.2% in states like Quintana Roo, Mexico City, and Baja California.

Categories

• Fastest Growing Segment: 3-star hotels (+3.5%) lead growth.
• Luxury Hotels: 4- and 5-star categories grew by 2.2%.
• 1-Star Hotels: The only category to decline (-1.1%).

Boutique & Branded Residences Boom

• Boutique Hotels: 32 certified properties; Jalisco leads with 18.5%.
• Branded Residences: Explosive growth driven by demand for luxury, exclusivity, and brand trust. Notable developments include:
  • Ritz-Carlton, Four Seasons, Armani, and Mandarin Oriental across Mexico City, Los Cabos, Riviera Maya, and San Miguel de Allende.
  • Fractional ownership and smart home integration are defining traits.

Development Pipeline & Investment (2025–2028)

• Mexico leads Latin America with 248 hotel projects (38,104 rooms) under construction (10% YoY growth).
• Hyatt, Marriott, Hilton are the top developers.
• Key destinations: Cancun, Tulum, Mexico City, and San Miguel de Allende.
• The luxury and upscale classes dominate the construction pipeline.

Occupancy & Demand Trends

• Top Performing Destinations (2024):
  • Playacar (87.3%), Akumal (79.2%), Cabo San Lucas (76.9%).
• Best Performing Category: 5-star hotels (average occupancy: 76%).
• Air & Land Arrivals:
  • 27 million tourists in 2024.
  • 22.3 million air arrivals, mostly from USA (63.4%), followed by Canada and Colombia.
• Cruise Sector: 2,759 ships (+4.3% YoY); Cozumel leads with 4.5 million passengers.

Infrastructure as a Growth Driver

Key projects boosting hotel development:

• Mayan Train: Will connect Cancun, Tulum, Bacalar, Mérida, etc., unlocking new eco-tourism zones.
• Tulum International Airport: Enhances Riviera Maya’s connectivity.
• Nichupté Lagoon Bridge: Improves tourist access within Cancun.
• Guadalajara–Puerto Vallarta Highway: Reduced travel time, stimulating growth in lesser-known coastal towns.
• Transisthmian Train: Creating industrial and cultural tourism hubs in Oaxaca and Veracruz.

Challenges Ahead

Geopolitical & Economic Uncertainty

• Tariffs from the U.S. (Trump-era policies) may impact U.S. tourists’ spending power and investor confidence.
• Potential decline in U.S. travel due to inflation, recession risks, and political tensions.

Security Concerns

• Ongoing issues with organized crime in some regions impact perception and safety.
• The sector is countering this via:
  • Enhanced security in hotels.
  • Strategic public-private safety campaigns.
  • Promotion of “safe” destinations like Mérida.

Strategic Insights

• Diversification is critical: Mexico must reduce dependence on U.S. tourists.
• Luxury market continues to outperform across development and demand.
• Infrastructure investments are acting as catalysts for new hotel development and repositioning of existing assets.
• Domestic and regional tourism will be increasingly important as a hedge against global shocks.

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