On the one hand, FIBRA Inn reported an occupancy rate of 62.8% by the end of the second quarter of 2023, surpassing its historical average of 55.4%. Meanwhile, FIBRA Hotel achieved an occupancy rate of 62.9%, surpassing its historical average of 59.4%. This increase in occupancy translated into a significant boost in these real estate trusts' revenue, according to SiiLA FIBRA Analytics data. In parallel, FIBRA Inn's revenues for the second quarter of 2023 were 49% higher than its quarterly average revenues since 2013. Similarly, FIBRA Hotel's revenues for the second quarter of this year were 77% higher than its quarterly average over the past 11 years.

The boom in conventional tourism and business travel has acted as a pivotal driver for the success of hotel-focused FIBRAs, generating heightened demand and occupancy. This, in turn, has positively influenced investor confidence in the tourism and hotel sectors.

Tourism and Business Travel in Mexico

During the first half of 2023, over 321,000 individuals engaged in business travel to Mexico, constituting 1% of the total national tourists, according to data from the Mexican Secretariat of the Interior.

Despite the moderate increase in business tourism over the past three years, the number of business travelers in the first half of 2023 already surpasses the annual figures of 2020 and 2021, trailing only 35% behind the total for 2022. This suggests that 2023 could potentially be a record-breaking year for business tourism, at least since the onset of the pandemic.

Business tourism, characterized by professionals traveling for work-related matters, has significantly impacted the hotel industry. Most of these visits (53%) are concentrated in the Central region of the country, primarily in Mexico City, followed by the North (25%), notably Nuevo Leon, and the Bajio (14%) and Southern (8%) regions. This geographical pattern reflects the areas with Mexico's highest economic and commercial activity.

In this regard, data from the FIBRAs indicates that 34.1% of FIBRA Hotel's rooms are in the country's Northern region, while 18.3% are in the Central zone and 15% in the Bajio. As for FIBRA Inn, 60% of its rooms are in Northern Mexico and 31% in the Central and Southern regions.

The performance of hotel-focused FIBRAs in the context of tourism resurgence and sustained growth in business travel reflects the recovery of revenues and occupancy in the hotel sector. The increased flows of domestic and international tourists and the rising demand for business travel have created a beneficial synergy for these trusts and the commercial hotel real estate market. As Mexico continues to establish itself as an appealing destination for tourism and business, the future of hotel-focused FIBRAs appears promising, supported by a growing customer base within the tourism and business travel industries.

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