Hotel Markets in Central and South America Post Mixed Results in Q2

When reported in U.S. dollar constant currency, hotels in Central and South America had mixed Q2 2016 results, according to STR.

The Central and South America region reported a 5.1% drop in occupancy to 54.1% when compared to the three key performance metrics from Q2 2015. To $89.75, the average daily rate increased by 5.3%. At $48.58, revenue per available room was unchanged.

When compared to June 2015, results in Central and South America were inconsistent. According to the area, occupancy dropped from 4.6% to 54.2%. Up 1.7% to $86.48, ADR. To $46.88, RevPAR decreased by 2.9%.

Results of featured nations for the second quarter of 2016:

Argentina a 5.5% drop in occupancy to 51.9%, but a 53.2% increase in ADR to ARS1, 535.76, and a 44.7% increase in RevPAR to ARS797.21 drove the hotel’s revenue up. Inflation was the cause of the rate’s significant increase. The country’s occupancy has consistently decreased, but according to STR analysts, the new, four-year Tourism National Plan will increase demand.

Brazil reported reductions in all three important performance metrics. ADR decreased by 3.6% to BRL279.08; RevPAR decreased by 11.1% to BRL143.88, and occupancy dropped by 7.8% to 51.6%. According to STR analysts, the nation’s economic downturn, concern over the Zika virus, and steady supply growth in the lead-up to the Summer Olympics are to blame for this year’s consistent performance declines.

Colombia each of the three key performance metrics—occupancy (+2.4% to 56.5%), ADR (+5.8% to COP262, 203.22), and RevPAR (+8.4% to COP148, 155.11)—posted increases. STR analysts point out that a depreciated Colombian Peso has boosted the nation’s tourism industry. The demand performance has improved (+8.3% year to date) as a result of increased safety precautions as well as government efforts to draw in more tourists.

Lima, Peru, occupancy (-3.3% to 72.4%) and revenue per available room (-0.7% to PEN352.79) both fell. The market’s ADR increased by 2.7% to PEN487.56. Supply has significantly outweighed demand (-0.6%) for the entire year (+6.4%).

Santiago, Chile, occupancy (-4.1 percent to 62.6%), ADR (-5.0 percent to CLP88, 654.75), and RevPAR (-8.5 percent to CLP55, 526.39) all showed declines. Market growth was seen in April and May, but June’s 34.5% decline in RevPAR to CLP49, 789.28 weighed on the quarter’s performance. When compared to June 2015, when the nation hosted the Copa América international football tournament, June 2016 was average by historical standards.

San José, Costa Rica, occupancy (+14.1% to 68.0%) and RevPAR (+15.0% to CRC34, 927.25) both grew by double digits. The market’s ADR was almost unchanged (up 0.7% to CRC51, 360.93). In San José, demand has increased by 9.4% year to date, while supply has increased by 1.2% during that time.

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