Buying a Hotel in Mexico

The Mexican real estate market for small hotels (up to 30 bedrooms) is gaining momentum, driven by record international arrivals, a resilient hospitality sector, and Mexico’s position as one of the world’s top tourism destinations.

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Market Trends and Locations

In 2024, Mexico welcomed 45 million international visitors, a 7.4% increase over the previous year. This robust growth has fueled demand across the accommodation spectrum, from luxury resorts to boutique hotels.

The country’s most popular destinations remain the Mexican Caribbean (Cancún, Riviera Maya, Playa del Carmen), Los Cabos, and Puerto Vallarta, which consistently attract leisure travelers from North America and Europe. Urban centers such as Mexico City, Guadalajara, and Monterrey also benefit from strong business, cultural, and bleisure tourism, widening the appeal of smaller, well-located hotels.

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Occupancy Rates

In 2024, Mexico’s hotel market recorded an average occupancy of 60%, with notable regional differences. Resort destinations led the way, reaching 71.1% in Q1 2024, compared to 51.7% in urban centers during the same period. With roughly 27,000 hotels nationwide, the sector demonstrates consistently strong utilization, particularly in beach markets.

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Transactions and Investments

Tourism accounts for 8.5% of Mexico’s GDP, underlining its strategic importance. While detailed data on small-hotel transactions is limited, Mexico remains one of the most active hospitality investment markets in Latin America. The development pipeline is robust, with 248 hotel projects (38,104 rooms) under construction in 2025, a 10% year-on-year increase. Growth is concentrated in Cancún, Tulum, Mexico City, and San Miguel de Allende, led by major brands such as Hyatt, Marriott, and Hilton, with the luxury and upscale segments dominating new development.

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Tourism and Visitor Statistics

Mexico’s inbound market is dominated by the United States (13M visitors), followed by Canada (2.5M). International tourism generated $33 billion in 2024, with an average length of stay of 4 nights. Mexico’s proximity to the U.S. and its extensive air connectivity continue to drive steady inflows of international visitors, reinforcing the country’s position as one of the most reliable hospitality markets in the Americas.

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In Summary, Mexico’s small hotel sector is well-positioned for sustained growth. Resort markets maintain high international visibility and pricing power, while urban destinations expand steadily through business and cultural travel. Large-scale infrastructure projects, including the new Tulum International Airport and the Mayan Train, will enhance connectivity across the Riviera Maya and link secondary destinations such as Bacalar and Valladolid. Similarly, highway upgrades around Puerto Vallarta and Riviera Nayarit are catalyzing hotel development in emerging coastal towns. Together, these dynamics reinforce Mexico’s long-term appeal and make it a compelling market for small hotel acquisitions and developments.