The Hotel Industry in the Central/South America Region Reports Positive Year-Over-Year Results for October 2017
The Central/South America region reported occupancy rose 7.3% to 60.6%, and a 13% ADR increase to $108.91 pushed RevPAR up 21.3% to $66.01.
Hotels in the Central/South America region reported positive year-over-year results in the three key performance metrics during October 2017, according to data from STR.
U.S. dollar constant currency, October 2017 vs. October 2016
- Occupancy: +7.3% to 60.6%
- Average daily rate (ADR): +13.0% to US$108.91
- Revenue per available room (RevPAR): +21.3% to US$66.01
Local currency, October 2017 vs. October 2016
• Occupancy: +10.0% to 69.7%
• ADR: +22.4% to ARS2,113.25
• RevPAR: +34.6% to ARS1,473.21
Nearly flat supply coupled with a significant increase in demand drove occupancy for the month, while the spike in ADR came as a result of inflation. STR analysts point out that if demand continues at the same level, Argentina will achieve total-year occupancy above 60% for the first time since 2011.
• Occupancy: +10.4% to 57.9%
• ADR: +2.5% to BRL281.23
• RevPAR: +13.1% to BRL162.84
Brazil experienced its first positive year-over-year RevPAR development since August 2016, the month of the Summer Olympics in Rio de Janeiro. STR analysts note that supply growth has started to slow since July 2017, especially compared with significant growth rates of the last three years. Overall in the past few months, Brazil has shown early signs of performance recovery, with the exception of Rio, which has experienced a -47.0% drop in RevPAR year to date.
- Occupancy: -8.8% to 63.1%
- ADR: -18.8% to US$98.46
- RevPAR: -25.9% to US$62.14
Ecuador had experienced year-over-year growth in occupancy each month since January, but falling demand led to an occupancy decline in October. Rates, however, fell more significantly (-18.8%), mainly as a result of a high comparison base in October 2016. That month, the country hosted Habitat III, a United Nations Conference on Housing and Sustainable Urban Development, from 17-20 October.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
Categories: Hotel Industry News