The Mexican hotel industry reported mixed results in the three key performance metrics for the first quarter of 2016, according to data from STR released to coincide with Tianguis Turístico.

Compared with quarter 2015, the Mexican hotel industry’s occupancy dipped 1.9 per cent to 63.8 per cent.

However, a 21.6 per cent rise in average daily rate to MXN2,442.49 drove revenue per available room up 19.2 per cent to MXN1,557.11.

“The devaluation of the peso combined with a prime season for travel made Mexico an attractive and affordable destination for US travellers,” said Fatima Thompson, STR’s associate director of business development, hotels.

“Even with a slight decrease in occupancy, hoteliers were able to raise rates to drive RevPAR.”

Among the key markets in the country, Mexico City (up 5.6 per cent to 67.1 per cent) recorded the largest year-over- year increase in occupancy, while the Yucatan Peninsula (down 8.2 per cent to 72.7 per cent) experienced the steepest decline in the metric.

“Along with demand driven by the devaluation of the peso, the first-quarter performance in North West Mexico was up due to the time period it compared with in 2015,” Thompson said.

“The effects from Hurricane Odile (September 2014) were still felt on the market’s hotel industry early in 2015.”

All five of the key markets in Mexico reported a year-over- year increase in ADR and RevPAR for quarter one of 2016.