Mounting Hotel Industry Attract Foreign Investments in Mexico: Ken Research

Increased liquidity, growing foreign investors and emerging domestic investment has projected to deliver an exponential growth of hotel acquisition by volume.
Covering over 60% of the GDP, Mexico’s emerging middle class has restored growth in service industry that has led to phenomenal growth in lodging demand.
User friendly smart phones and advances in technology are altering relationship between hotels and guests which has transformed the hospitality industry enhancing hotel’s financial performance.

Ken Research announced its latest publication on, “The Future of Hotels in Mexico to 2020” which provides detailed analysis of hotel market in Mexico. This report provides an in-depth analysis of the major market players of Mexico Hotel industry along with the customer’s preferences. Category-wise coverage of different segments in the industry is also included in the report. The report enables the reader to interpret future outlook on how the market will shape up by the end of this decade. The report also includes an overview of the Mexico Hotel industry covering key trends along with the SWOT analysis of the hotel industry in Mexico.

By 2017, Mexico’s number of hotel rooms are expected to expand by 6% (approximately 20,000), out of which 50% will be attributed to the cities which have registered the maximum expansion in hotel occupancy. Cancun, Mexico City and Los Cabos have become the favorite City for hotel investment. As per statistics, Mexico’s tourism has occupied the 4^th largest source of foreign exchange in the country. In addition to it, Mexico is also the most attractive place for investments and business activities. There are various fiscal adjustments made by the government like the energy reform package which was approved to allow foreign investment in hotel industry. Mexico City is enjoying the maximum visitations due to REIT- like structures as these investment vehicles have provided liquidity to markets that have witnessed very few transactions. Mexico City is among the largest five cities and the most populous area. On the other hand, Cancun records the highest number of hotel rooms among which 60% are branded rooms are affiliated to the US brands.

From the macroeconomic perspective, Mexico’s real GDP is expected to project an average of 4% annual growth during 2015-2020 which is more than of that of the US. Mexico is the seventh most important market in the world in terms of both size and revenue covering all the luxury brands like specialty-select and upper-upscale segments. To expand hotel portfolio across primary and secondary markets, FIBRAs have formed partnership with global hotel companies. Industrial and manufacturing activities are the major contributors of growth of primary and secondary markets paving the way for a promising economic outlook of Mexico’s hotel industry. There are approximately 70 hotel companies working in Mexico and Mexican government plays a dominant role in assisting and lending money for the development of hotel industry. Technology is the key driver enhancing operational efficiencies and strengthening relation with the customers.

Key Topics Covered in the Report