What do today’s urban travellers to Latin America crave regarding a bed for the night? The latest Mabrian report has lifted the lid on a fascinating tug-of-war between traditional hotels and the booming world of short-term rentals. Spoiler alert: the old guard still rules the roost, but a restless challenger is snapping at its heels.
Hotels Still Hold the Crown
In the grand capitals of Latin America, think Buenos Aires, Mexico City, Lima, Quito, Bogotá, Medellín, Montevideo and Rio de Janeiro, hotels remain the preferred port of call. According to Mabrian’s latest study, hotels account for between 60% and 80% of all stays, with Montevideo leading the charge at 87%. For quick business trips or short jaunts, hotels are still king.
Carlos Cendra, Partner and Director of Marketing and Communications at Mabrian, summed it up neatly:
“The weight, relevance, and role assumed by each of these options in diverse destinations must respond to the goal of capitalising on international markets with greater purchasing power, offering diverse alternatives for domestic tourism, and, more broadly, building a balanced accommodation supply, adapted to the destinations’ tourism development goals.”
In plain English: hotels will always have their place, but smart tourism boards must juggle both models to thrive.
Short-Term Rentals: The New Kid with Moneyed Friends
Hotels may have heritage, but short-term rentals steadily gain a fan base. Interestingly, it’s a tale of two markets. On the one hand, you’ve got well-heeled international visitors, mostly Americans, who are quite happy to fork out entire properties for the family or a small group. Alternatively, you’ll find domestic or regional travellers opting for more affordable rental options.
This dual appeal is shaping up to be a regulatory headache. As Cendra put it, the report’s findings show “the need to define regulatory and product balance policies that recognise the complementarity of a mix combining hotel beds and tourist rentals.”
Put bluntly: hotels and rentals are now two sides of the same coin. Ignore either at your peril.
Domestic Markets Still Drive the Show
One might imagine a horde of jet-setters driving demand, but domestic tourism remains the lifeblood of these cities’ lodging sectors. Locals make up the bulk of demand, with nearby Latin American neighbours and the US topping the international list.
There are quirks, however. In Buenos Aires, only 37% of domestic travellers opt for hotels. Most choose cheaper rentals, a sure sign that affordability reigns in Argentina’s capital. Medellín throws up another twist; it’s the only city where an international market (Americans) tops short-term rental demand, edging out domestic visitors and even Mexicans.
A Natural Segmentation Emerges
The report highlights a “natural segmentation” at work. Predictably, hotels are the preferred choice for couples and business travellers. Between 20% and 30% of hotel guests across the surveyed cities are business travellers, often plumping for 3—and 4-star hotels, though American visitors display a marked taste for four and 5-star luxury.
Meanwhile, short-term rentals shine brightest with families and groups of three to five people. Couples seeking more extended stays are also drawn to rentals. The vast majority, between 70% and 90%, prefer entire properties. Moreover, Mabrian found that 60% of rental users report high or very high incomes, underlining just how valuable this market can be for destinations.
The Looming Regulatory Chessboard
Mabrian’s report doesn’t shy away from the obvious: managing this lodging mix will be complicated. “The accommodation mix in Latin American urban destinations is becoming increasingly complex and faces decisive regulatory challenges that will shape its future,” Cendra warns.
Regulators and city planners are now faced with a delicate balancing act. Clamp down too hard on rentals, and you risk alienating wealthy internationals. Let them run riot, and hotels cry foul while neighbourhoods suffer from overtourism.
But with challenge comes opportunity. New hotel concepts and alternative lodging models are popping up to woo fresh traveller segments, spread tourism into lesser-known destinations, and add agility to the market. The golden ticket, according to Cendra? “An integrated, data-driven strategy… based on evolving demand trends and the specific conditions of each destination.”
FIT 2025: A Timely Forum for Debate
It’s no coincidence that Mabrian is publishing this study just ahead of the Latin American International Tourism Fair (FIT) 2025, held in Buenos Aires from 27–30 September. The event is the heart of the region’s travel industry, and this year’s spotlight will shine on innovation and technology via FIT TECH, the dedicated vertical of the TRAVEL FORUM LATAM congress. Mabrian will be right there, armed with its latest insights.
The timing is perfect. As the hotel-versus-rental battle heats up, industry leaders gathering at FIT will undoubtedly debate how best to harness both sides for long-term growth.
Why This Matters
The message for destinations in Latin America is clear: it’s no longer about hotels or rentals. It’s about both, in carefully measured doses. If the mix gets wrong, cities could face market distortions, unhappy locals, or missed revenue opportunities. Get it right, and they’ll secure a sustainable, diverse accommodation landscape that can weather demand swings and serve everyone from business travellers to families splurging on a Rio penthouse.
Hotels may have history, but rentals have momentum. The winners will be the destinations wise enough to play referee.
By Charmaine Lu
