When it comes to top-line performance recovery, average daily rate (ADR) has been the standout metric for most markets around the globe. Mexico has been 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 at just 89% of 2019 pre-pandemic levels.
Mexico’s leisure-driven markets and weekends in general have produced the highest rate premiums from 2019.
The Mexican Caribbean region, which has exceled in balancing restrictions and attracting tourists throughout the pandemic, set a record for room nights sold during the April year-to-date 2022 period. Forward-looking data from Forward STAR shows healthy booking levels for the region over the coming months.
The upper echelon hotels in Mexico, specifically upscale through luxury, have recorded double-digit performance increases from the same period in 2019. This puts those hotel classes beyond recovery and into peak performance territory.
Central business districts and urban locations are catching up in recovery but still waiting for business travel to kick in significantly. Through the first fourth months of the year, those areas have seen demand spikes on weekends, especially the border cities now that restrictions have lifted.
Reservation data show that booking trends are also returning to pre-pandemic patterns, Mexican Caribbean roaming 50% future occupancy, 90 days out, with low pickup changes.