“Condominiums Enable Investors to Purchase Homes and Gain Significant Profits”
While some international destinations are still struggling to recover from the impact of the pandemic, regions like the Riviera Maya have not only returned to 2019 levels but have also experienced significant double-digit growth, boosting investment opportunities in the area. New accommodation models such as apart-hotels have gained traction. Internationally, the Mexican Caribbean has garnered attention with a 15% increase in visitors, a notable achievement when many tourist attractions around the world are still struggling to rebound, attributed to the pandemic context, according to José Antonio Vázquez, CEO of Wyndham Grand Mayakaan. In an interview with ‘Real Estate Investment,’ an expert shared a concerning statistic about the number of travelers: when comparing the number of tourists traveling to other global destinations like Asia, Europe, or the United States from 2019 to the pandemic period, some countries have fully recovered, while others still report negative tourist numbers. “In the Mexican Caribbean, areas like Cancun and the Riviera Maya not only showed recovery but also recorded over a 15% growth compared to 2019. This high growth, supported by data from December, is a significant development for 2022, and it is expected to continue throughout the year.”
In this context, as highlighted in a program hosted by Neximo’s CEO, Karim Goudiaby, the Riviera Maya remains one of the most attractive destinations for real estate investment. Additionally, significant investments in infrastructure by the Mexican government have piqued investor interest in this part of the country. After all, as Vázquez pointed out, “when the government invests in tourism and infrastructure, it opens up opportunities for private investment. If the federal government is investing heavily, why shouldn’t we, as investors, follow the same trend?” Regarding observations in Cancun, he noted the area’s significant development in terms of accommodation demand, contributing to the growth in hotel offerings. “If you analyze the growth in the number of rooms in Cancun, you’ll see it’s increasing by 20,000 rooms annually, with approximately 120,000 rooms now available. This has been the trend in recent years, indicating substantial growth comparable to that seen in Dubai. So, the risk of constructing large hotels is more limited because you can see that the supply is growing significantly. However, demand will eventually catch up, as evident in Cancun or hotel occupancy rates in Mexico. In the Caribbean, occupancy can reach 80% or 90%, and in some seasons, even 100%, which creates strong demand, fully utilizing the supply,” he added.
New Housing Trends
He discussed emerging trends in the accommodation sector, highlighting that the brands he represents identify opportunities in promoting vacation projects based on the apart-hotel model. He mentioned that with this approach, tourists not only have the chance to stay in branded hotel-residences and access top-notch resort amenities but also allows interested investors to purchase residences and earn attractive profits from accommodation expenses and hotel-backed capital gains. “What’s most interesting is that the company doesn’t just enter the hotel business but also ventures into the apart-hotel business model, where an owner can buy a residence or home and operate it as a hotel that the owner might use one or two times a year. The rest of the time, it operates as a hotel backed by Wyndham,” the executive added.
Regarding the differences between such projects and vacation rentals like Airbnb, he pointed out that while they share the same accommodation concept, these projects are managed by hotel companies and offer the option to stay in branded hotel residences. “Properties managed by Airbnb control occupancy and compete on price, unlike branded hotel properties, which enjoy high occupancy rates because they have the full brand knowledge, sales team, and other elements for weddings and conferences. This ultimately boosts occupancy and revenue,” he confirmed. Finally, he emphasized this point once again.”
by Rodrigo Madrid