The break- even point for a 5 Star hotel in Cancun will vary depending on a number of factors. However, a general rule of thumb is that a 5-star hotel in Cancun with an occupancy of 70% will need 3 to 5 years to break even.
Inspiring Investment Points
High demand: Cancun is the second most visited tourist destination in the world after Dubai. Cancun International Airport (CUN) welcomed over 30 million visitors in 2022,this represents a 100% increase from the 15 million tourists arrived in 2021.
This high demand for hotel rooms drives up prices, making it a profitable investment.
Major hotel companies such as the Hilton and the Ritz-Carlton are renovating locations in Cancun to keep up with the demands of tourism in the area, with all-inclusive hotels skyrocketing in popularity in the past year.
Cancun International Airport welcomes flights from over 120 cities worldwide, with over 40 of them departing from the U.S., so it comes as no surprise that it makes up a large percentage of holiday goers.
Cancun Airport implements E-Gate line for U.S. Passport holder. Americans can now simply “scan” their way into Cancun, as there are entering their own country, without having to speak to a custom agent.
Government support: The Mexican government offers a number of incentives for foreign investors, including tax breaks and relaxed regulations.
Strong infrastructure: Cancun has a well-developed infrastructure, with good roads, airports, and ports. This makes it easy to get to and from the city, and it also makes it easy to operate a hotel.
Expanding market: The tourism market in Cancun is expanding, with new hotels and resorts being built all the time. This creates an opportunity for investors to get in on the ground floor of a growing market.
Special events: Cancun is a popular destination for special events such as weddings (according to the Cancun Convention and Visitors Bureau, there were over 25.000 weddings held in Cancun in 2022), conferences, company incentives and festivals.
Great weather: Cancun has a tropical climate with warm weather year-round. The average temperature is 80 degrees Fahrenheit, and the humidity is relatively low.
Variety of activities: Cancun offers a variety of activities for all ages, including swimming, sunbathing, snorkeling, diving, fishing, shopping, dining, and nightlife. There are also many Mayan ruins and cenotes (natural swimming holes) nearby that you can explore.
Nightlife: Cancun has a vibrant nightlife scene, with a variety of bars and high class clubs.
Safe and secure: Cancun is a safe and secure destination. The crime rate is low, and the police are present in most tourist areas.
Maya Train
The Maya train is a major $ 6.9 billion infrastructure project that expected to have a significant impact on the Yucatan Peninsula. The train will have seven stops (1,554 kilometers) inclusive Cancun and is expected to start operating in December 2023. It is anticipated to carry 10 million passengers per year.
