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The report is a comprehensive look at both markets in Latin America and the hotel brands that are investing in new and existing properties from Mexico south to Chile. The report highlights the 20 largest brands operating in the region, from AccorHotels at the top by number of rooms (47,000) to smaller yet still quite large brands including Spain’s NH Hotel Group and Bahia Principe (both at 10,000 rooms).
Among Latin American countries, Mexico leads its peers as the largest hotel market in terms of inventory, beating out Brazil. Much of the demand comes from international visitors but the country’s domestic travel market has also begun to pick up steam in recent years.
The overall economy relies heavily on trade ties with the U.S., hence the relative health of the U.S. economy has helped Mexico weather an otherwise unfavorable global landscape for oil producing nations. Foreign investment continues to flow into Mexico’s industrial base particularly in advanced manufacturing, as wages in China have edged upward.
These and other factors have led to a more favorable climate for hotel operators and mainstream beach destinations, but also the cities and zones within the heart of Mexico. About 40% of Mexico’s total hotel inventory is located in non-beach destinations.
Certain industrial hubs in Mexico have grown their hotel room inventory by as much as 20 percent since 2014, as economic activity in sectors such as automotive manufacturing and knowledge services outsourcing continue to gain momentum.
Data show that places like Puebla, Queretaro, and Villahermosa – cities at the heart of the Mexican industry – have expanded in room size by 20 percent in some cases. Looking beyond the maturing and intensely competitive beach resort market, global chains are keeping a close eye on these hubs as Mexican industry, particularly the automotive sector, shows signs of strength.
Pent-up demand, improved connectivity and tourism product, are expected to drive record visitation, particularly in established destinations such as Cancun and Riviera Maya. Interior city hotel supply has also expanded in certain secondary cities such as Puebla and Queretaro.
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Source: skift.com