Mexican luxury tourism has been growing considerably over recent years, driven largely by the demand for unique hotel stays from affluent foreigners. The Association of Real Estate Developers (ADI) reports that tourism will be the second most important source of capital in real estate by 2026, with the capitalization of tourism property construction projects reaching $3,882 million. This will be almost twice the amount of investments in industrial facilities.
Mexican hotels have seen a rise in demand from foreign high-net-worth visitors and are witnessing the growth of their revenue. The industry comprises about a fifth of the total number of hotel revenues in Mexico and is estimated to bring more than $4200 million in 2026. This means that the total revenues from such hotels will be almost twice as much as they were a decade ago.
Urban Tourism Boom and Rising Hotel Rates
The focus of urban tourism in Mexico is shifting towards the capital, which is becoming an important leisure destination in and of itself. Traditionally geared towards business travelers, Mexico City has seen a considerable increase in the number of tourists attracted to its culture and local attractions. Thus, while the plurality of tourists in the capital are still Mexican, the number of foreigners increases significantly. Notably, they contribute to the city’s hospitality sector revenues: in 2025, tourists spent 102,174 million pesos on hotel accommodations in the capital, surpassing the amounts of 2019.
It is evident that the demand for hotel accommodations in luxury class is significant. Particularly in Los Cabos, the nightly rates for luxury hotel rooms start at $1,000 per night. In prime Mexico City neighborhoods such as Reforma, Polanco, and Condesa, rates reach $700. At the same time, more lifestyle-oriented hospitality venues, such as Andaz and Mondrian, have appeared in the city, offering lodging from $300 to $400 per night.
Branded Residences Expand the Market
In Mexico City, Guadalajara, and Monterrey, the demand for branded hotel apartments has increased. They provide their guests with the services of a five-star hotel and the comforts of a home. At least sixty percent of Mexican branded residences are purchased by foreign individuals, mainly from the United States and Canada.
