Hospitality Industry in Mexico - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Type (Chain Hotels and Independent Hotels), by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels and Luxury Hotels).

Market Snapshot

Hospitality Industry in Mexico
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 5.3 %

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Market Overview

The hospitality industry in Mexico is a thriving industry. Even with the high number of tourists visiting the country, the country has recorded moderate even negative growth in hotel occupancy rates. According to STR Mexico, the Central North region registered the largest drop, in occupancy rate in Q3 2019 -5.8% when compared to that in Q3 2018. Mexico has been registering a growing number of both business and leisure travel trips. Being the country with the highest number of travelers in Latin America, according to the official Ministry of Tourism (SECTUR) database, the total hotel supply in Mexico registered at 22,560 properties with approximately 808,000 rooms. The hospitality industry in Mexico is highly dominated by domestic players owning to high crime and corruption in the country, which are restricting investors from other regions to invest in the country. Both the domestic and international brands have significantly expanded their footprints over the past decade in both the business and leisure travel segments. Mexico City, Guadalajara, and Monterrey, which are the largest three urban areas in Mexico have the presence of more branded hotels is relative with around 60% when compared to non-branded.

Scope of the Report

A complete background analysis of the Hospitality Industry in Mexico, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper mid scale Hotels
Luxury Hotels

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Key Market Trends

Rising Number of Visitors to Mexico are Driving the Market

Mexico has been recording a growing number of visitors to the country year on year. The tourism and hospitality industry in Mexico is a third-highest contributor to GDP. Mexico has been attracting a large number of visitors and more than 65% of visitors are from the USA and Canada alone. In order to attract a great number of visitors from Asian Countries, Mexico introduced New direct flights from Asia started in early 2018. Routes include flights from Tokyo to Mexico City, Shanghai to Mexico City, and connecting travel from Seoul to Mexico City through Monterrey.

International Tourist Market Share by Country.png

Upper Mid-Scale Segment is Dominating the Market

Mexico is recording a high number of midscale and upper mid-scale hotels followed by an upper-upscale segment of hotels. The midscale and mid-scale hotels account for more than 50% of the total market, whereas the upper-upscale segment covers more than 25% of the market. The budget and luxury segment accounts for the remaining share of the market. The economic uncertainty in the country is adversely affecting the industry and making investors be highly selective when it comes to investing in new locations.

Chain Hotels and Rooms Share by Scale & Size.png

Competitive Landscape

Even though Mexico has a high number of international chains present in the country, the hospitality industry is dominated by local players. There are around 180 international and domestic brands across Mexico. Grupo Posadas is the leader in the segment with more than 140 hotels that are present across the country.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Impact of COVID-19 on Hospitality Industry

    4. 4.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

    5. 4.5 Leading Cities in the Mexico with Respect to Number of Visitors

    6. 4.6 Investments (Real Estate, FDI and others) in the Hospitality Industry

    7. 4.7 Technological Innovations in the Hospitality Industry

    8. 4.8 Insights on Shared Living Spaces Impact on the Hospitality Industry

    9. 4.9 Insights on Other Economic Contributors to the Hospitality Industry

    10. 4.10 Value Chain Analysis

    11. 4.11 Porter's Five Forces Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Chain Hotels

      2. 5.1.2 Independent Hotels

    2. 5.2 By Segment

      1. 5.2.1 Service Apartments

      2. 5.2.2 Budget and Economy Hotels

      3. 5.2.3 Mid and Upper mid scale Hotels

      4. 5.2.4 Luxury Hotels

  6. 6. COMPETITVE INTELLIGENCE

    1. 6.1 Market Concentration

    2. 6.2 Company profiles

      1. 6.2.1 Grupo Posadas

      2. 6.2.2 InterContinental Hotels Group

      3. 6.2.3 Marriott International

      4. 6.2.4 Cityexpress Hoteles

      5. 6.2.5 AIM Resorts

      6. 6.2.6 RIU Hotels & Resorts

      7. 6.2.7 Grupo Real Turismo

      8. 6.2.8 Grupo Vidanta

      9. 6.2.9 Palace Resorts

      10. 6.2.10 Hoteles Mision

    3. *List Not Exhaustive
    4. 6.3 Loyalty programs offered by Major Hotel Brands

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OUTLOOK OF THE SECTOR

  9. 9. APPENDIX

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Frequently Asked Questions

The undefined market is studied from 2016 - 2026.

The undefined is growing at a CAGR of 5.3% over the next 5 years.

Grupo Posadas, InterContinental Hotels Group, Marriott International, Cityexpress Hoteles, Grupo Real Turismo are the major companies operating in undefined.

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