Welcome to Cabo San Lucas Real Estate Sign in | Help

Cabo San Lucas Blog

This blog discusses Los Cabos real estate and other important news and happenings in Cabo.


Hotel Occupancy in Los Cabos


Market trends indicate that over the next five years Los Cabos is projected to have more demand for hotel rooms than the current supply. The number of tourist arrivals to Los Cabos continues to increase having a positive effect upon both hospitality and real estate. But how have hotel occupancy rates fared?

Healthy occupancy rates are keys to a sustained recovery. Hospitality occupancy rates and tourist arrivals are leading indicators of the strength of the Los Cabos resort market. Historically, as the number of tourist arrivals has increased, hotel

occupancies rates have also increased. The market can respond to additional new demand by either the development of new hotels or increasing rack rates. Los Cabos has historically had a combination of both, which has led to a generally stabilized hotel market and no oversupply. This balance has generally helped Los Cabos recover from the recession faster than other competitive markets.

The trends indicate that the Los Cabos four and five star hotels can easily absorb new demands.

As market occupancies rise above 70%, the market is then able to sustain increased rack rates. While an increased occupancy at current rates is better than an increase is rack rates, the projections indicate as the expected new demand becomes a reality both occupancies and rack rates can increase, especially

along the Los Cabos corridor.

While it is important to note that every hotel in Los Cabos may not warrant an

increase, the general trends show that the market is becoming healthier to be able to sustain increased occupancy and rack rates.


No Comments

Anonymous comments are disabled