Background on the Situation in Puebla
In Puebla, Mexico, 30 motels are transitioning into passage hotels due to low occupancy rates averaging 35%. Weekend occupancy barely reaches 60%, prompting motel owners to change their businesses or face permanent closure, which would result in job losses.
The Role of the Association of Poblano Hotels and Motels
Manuel Domínguez Gabián, President of the Asociación Poblana de Hoteles y Moteles, stated that this decision was not easy for his members, but it was necessary to avoid definitive closures that would lead to job losses.
Saturated Motel Market
Domínguez Gabián highlighted the six-year-long saturation of the motel market in Puebla and surrounding municipalities, which has prevented the construction of new complexes. Currently, there are 120 motels operating in the region.
Financial Challenges for Motel Owners
He explained that investing in a motel with 30 to 40 rooms, costing around 20 million pesos, is not profitable when occupancy rates are low and there’s no foreseeable return on investment.
Motel Transformation into Passage Hotels
Domínguez Gabián mentioned that due to the pandemic, some entrepreneurs have shifted their motels towards family-oriented businesses through targeted marketing. This change has attracted budget-conscious families seeking affordable accommodation compared to traditional hotels.
Motel Reconfiguration for Families
The 30 motels in question have stopped catering exclusively to couples and now accommodate families of four without requiring additional investments. This reconfiguration has increased the average occupancy rate to 70%, improving revenues and avoiding layoffs, as each establishment employs 10 to 15 staff members for cleaning.
Affordable Rates for Families
Simple room rates range from 250 to 300 pesos, while double rooms cost between 450 and 500 pesos. These prices are attractive to families traveling on a budget.
No Seasonal Discounts
Unlike many hotels, these passage hotels do not offer seasonal discounts. They maintain low, consistent prices throughout the year.
Key Questions and Answers
- What is driving the transition of motels to passage hotels in Puebla? Low occupancy rates and market saturation have prompted motel owners to change their businesses to avoid closures and job losses.
- How many motels are transitioning in Puebla? Thirty motel establishments are undergoing this transformation.
- What factors contributed to the decision to change businesses? The six-year-long market saturation, low occupancy rates, and the desire to avoid job losses played a significant role in this decision.
- How has the pandemic influenced these changes? The pandemic has led some entrepreneurs to shift their motels towards more family-oriented businesses, attracting budget-conscious travelers.
- What are the new room rates for these passage hotels? Simple rooms cost between 250 to 300 pesos, while double rooms range from 450 to 500 pesos.
- Do these passage hotels offer seasonal discounts? Unlike many traditional hotels, these establishments maintain consistent, low prices year-round without seasonal discounts.
