MEXICO Trends and Developments Contributed by: Gabriel E. Torres Escoto, Santiago Carrillo Cattori, Javier Domínguez and Carlos Riggen, Ritch Mueller
opment market in Latin America, in terms of both the number of projects and the number of rooms under construction. Unlike earlier growth cycles driven pri - marily by resort expansion, recent development activ - ity reflected a more balanced mix of destinations and asset classes. Luxury and upscale hotels accounted for a growing share of new supply, driven by international brands seeking to capitalise on higher-yield segments and long-term demand fundamentals. Concurrently, urban and lifestyle destinations featured more prominently in the development pipeline, signalling broader geo - graphic diversification of hospitality investment. Capital flows into hospitality assets remained active throughout this period. Rather than a surge in specu - lative activity, investment was characterised by dis - ciplined strategies, selective acquisitions and an emphasis on assets and structures capable of offering stable cash flows and downside protection. Certain transactions illustrate how global operators and investors have adapted their strategies to Mexi - co’s maturing hospitality market. In 2025, Hyatt com - pleted the approximately MXN2 billion sale of the real estate portfolio previously acquired from Playa Hotels & Resorts to Tortuga Resorts. Crucially, Hyatt retained long-term management relationships through 50-year management agreements covering 13 of the 14 prop - erties sold, along with MXN200 million of preferred equity in Tortuga Resorts. This transaction exempli - fies the broader shift towards asset-light models in the hospitality sector, allowing operators to recycle capital, reduce balance-sheet exposure and redeploy resources towards brand expansion and management platforms – while maintaining operational control and brand presence. Similarly, the acquisition of hotel assets by BG Hotels marked the entry of a new Euro - pean operator into the Mexican market, highlighting Mexico’s continued appeal for cross-border hospital - ity investment and reinforcing the depth and liquidity of its hotel transaction market. Taken together, these macroeconomic and transac - tional dynamics illustrate a hospitality sector that has moved beyond recovery into a phase of consolidation and measured expansion. This environment provided
the foundation for the continued evolution of develop - ment models and transaction structures – particularly those combining hospitality and residential compo - nents – examined in the following section. Branded residences and mixed-use hospitality: from resort add-ons to core investment structures Concept and global context Branded residences are residential units developed in association with a recognised hotel brand, typi - cally benefiting from brand affiliation, design stand - ards, management services and access to hotel-level amenities. While the concept is not new, it has gained renewed relevance in Mexico over the past decade as hospitality operators and developers seek to diversify revenue streams and align real estate offerings with lifestyle-driven demand. Internationally, branded residences have evolved from ancillary components of resort developments into central elements of mixed-use hospitality projects. In many markets, they are no longer viewed as add-ons to hotel assets, but as integral components of broader development strategies combining accommodation, residential use and experiential offerings under a uni - fied brand ecosystem. In Mexico, this global trend has been progressively adopted and adapted to local market conditions – particularly in destinations with strong tourism fun - damentals, but also in urban and cultural markets not traditionally associated with luxury hospitality devel - opment. Sustained demand from both domestic and international high net worth individuals has supported this expansion. Mexico has consequently consolidat - ed its position as a leading global market for branded residences. A 2025 study by Onirius Hospitality Advi - sors ranks Mexico as the fourth-largest market world - wide for branded residences and the third-largest in terms of developments under construction, reflecting the depth, maturity and continued growth of this seg - ment. Market expansion, consumer demand and investment rationale Over recent years, branded residences have moved from a complementary feature of resort developments to a central component of hospitality investment strat -
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