The Mexican Caribbean, particularly Cancún, has emerged as the frontrunner in Mexico’s hotel expansion during the first eight months of 2024. This period saw the opening of 2,900 new hotel rooms in the region, according to a report by CBRE México.
Nationwide, Mexico witnessed the addition of over 4,000 new hotel rooms, a 172% increase compared to the entire 2023. Cancún contributed 68% of this new supply, followed by Mazatlán at 20% and Los Cabos at 10%.
The growth is primarily driven by high demand for beach destinations and an increase in international tourists. Mexico welcomed 25.8 million foreign visitors, a 5.3% rise from the same period in 2023.
Luxury hotels continue to attract investors, with 64% of those surveyed expecting positive results. This trend has been fueled by the rise in luxury travel following the Covid-19 pandemic.
Currently, more than 10,600 rooms are under construction across Mexico. Cancún leads with 31% of these rooms, followed by Mexico City (11%), Riviera Maya (10%), and Los Cabos (9%).
Los Cabos is anticipated to be one of the most sought-after destinations this year. Its 4 and 5-star hotels have increased their rates by 8% to 30% in recent months.
Other attractive investment locations include Tulum, Punta Mita, Mérida, Monterrey, and Playa del Carmen. Cancún hoteliers have focused on maintaining competitive rates with high-season promotions.
Cancún Leads Mexico’s Hotel Expansion: A Boom in Tourism and Investment
From January to July 2024, Mexico’s average hotel occupancy rate remained steady at 60.2%. Top destinations like Riviera Maya, Cancún, Los Cabos, and Puerto Vallarta saw occupancy rates between 70% and 80%.
During this period, 13.8 million tourists arrived at Mexican airports, primarily from the United States, Canada, Colombia, the UK, and Argentina. Tourism generated $20.3 billion in foreign exchange, with an average spend of $1,185 per visitor.
Major cities averaged 57.5% hotel occupancy. Mexico City accounts for 11% of rooms under construction, while Monterrey and Guadalajara have 6% and 5% respectively.
Foreign Direct Investment in tourism reached $1.37 billion (R$7.67 billion) in the first half of 2024, surpassing the 2019 total by 11%. All-inclusive hotels attracted over $752 million (R$4.21 billion) by the second quarter.
The tourism GDP grew by 7.2% annually in the first quarter, showing a 7.4% recovery compared to the same period in 2019. Employment in the sector hit a record high of 4.8 million people, 13% more than in 2019.