Vacation Rentals Now Account for 43.5% of Mexico’s Lodging Supply, Hotel Sector Calls for Regulation

Mexico City — The rapid expansion of vacation rental platforms in Mexico has raised concerns among hotel industry leaders, who warn of unfair competition as short-term rentals now account for nearly half of the country’s formal lodging supply.

A study presented by the National Association of Hotel Chains (ANCH) and the Mexican Association of Hotels and Motels (AMHM), with support from the Sustainable Tourism Advanced Research Center (STARC) at Anáhuac Cancún University, reveals that vacation rentals represent 43.5% of Mexico’s formal lodging supply.

The report, titled “Dimensioning and Characterization of Vacation Rentals in Mexico,” indicates this model has evolved from its origins as a sharing economy scheme into a large-scale business operation.

According to the analysis, four factors explain this expansion: massive growth in supply, transaction volume, concentration of properties among a small number of hosts, and the revenue generated by this market.

Hotel Industry Calls for Equal Rules

ANCH President Jorge Paoli Díaz explained that hotels operate under regulations established over a century ago, including tax obligations, civil protection standards, official registrations, and land use requirements.

In contrast, he noted that many vacation rental units operate without similar oversight.

“The hotel industry has adapted and innovated over time, but competing becomes difficult when the rules aren’t the same,” Paoli Díaz said. “These platforms need to operate as commercial establishments and tourism service providers, complying at minimum with safety and civil protection standards.”

Concerns Ahead of Easter and World Cup 2026

The issue gains urgency with the Easter holiday period approaching from March 29 to April 5 and with attention turning to the FIFA World Cup 2026, which will significantly increase lodging demand across Mexico.

AMHM President Miguel Ángel Fong warned that the expansion of short-term rentals also affects real estate markets, as residential housing converted to vacation rentals reduces available housing in some cities.

He added that lack of regulation can create problems related to security, land use, and neighborhood relations.

Property Concentration and High Revenue

Data from the study indicates this segment generated over $5 billion in revenue in Mexico during 2025.

Currently, more than 21,000 property owners have two or more units dedicated to vacation rentals, with one host found to have 455 properties listed on digital platforms.

According to the report, the average annual income for property owners under this scheme approaches one million pesos.

Regulation to Protect Tourist Destinations

STARC Director Francisco Madrid noted that vacation rentals aren’t developing new destinations but instead concentrate in established tourist areas like Los Cabos and Mexico City.

Given this pattern, he suggested implementing measures such as mandatory property registration and limits on the number of units per host, following examples from cities like Barcelona and New York.

Industry representatives agreed that establishing clear rules for this market would create more balanced competition while providing greater security for visitors and protecting the stability of tourism-receiving communities.