Negative Performance Metrics Continue in April 2017 for the Hotel Industry in the Central/South America Region
The Central/South America region reported negative hotel performance in April 2017. Occupancy fell 2.5% to 54.7%, ADR dropped 1.4% to $100.42 and RevPAR decreased 3.9% to $54.94.
The hotel industry in the Central/South America region reported negative results in the three key performance metrics during April 2017, according to data from STR.
U.S. dollar constant currency, April 2017 vs. April 2016
- Occupancy: -2.5% to 54.7%
- Average daily rate (ADR): -1.4% to US$100.42
- Revenue per available room (RevPAR): -3.9% to US$54.94
Local currency, April 2017 vs. April 2016
- Occupancy: +9.3% to 61.6%
- ADR: +16.5% to ARS1,877.04
- RevPAR: +27.4% to ARS1,155.60
The absolute occupancy level was the highest for an April in Argentina since 2011. According to STR analysts, leisure business was the main driver of performance growth as RevPAR was up 40.4% on weekends compared with 21.8% on weekdays. At the start of the year, the government introduced a new policy to reimburse international tourists for value-added tax on hotel stays. At the market level, Buenos Aires experienced a 15.5% uplift in RevPAR, brought on by a 4.9% increase in occupancy to 69.3% and a 10.1% increase in ADR to ARS2,051,79.
- Occupancy: -6.4% to 53.3%
- ADR: +3.6% to COP270,353.71
- RevPAR: -3.0% to COP144,168.76
Through the first four months of 2017, Colombia hotels reported a 4.1% decline in RevPAR. This came in comparison with a particularly strong growth period in 2016 (RevPAR: +15.4%). April-specific performance was affected by a decline in Bogotá (RevPAR: -15.7%), and STR analysts note that the country’s hotel performance could face further challenges due to a development pipeline comprising 50 projects and 7,533 new rooms. According to Tourism Economics, Colombia’s economy opened the year on weak footing but is expected to see uplift in economic activity driven by a rebound in investment and domestic demand as inflation falls and credit conditions ease.
- Occupancy: +3.3% to 58.8%
- ADR: -4.7% to US$96.24
- RevPAR: -1.5% to US$56.56
Consistent with the previous three months, Ecuador’s April occupancy growth was overshadowed by a decline in ADR. Ahead of the second round of the presidential election, the country reported occupancy increases of 11.7% on Friday, 31 March and 5.5% on Saturday, 1 April. Significant performance increases also were seen during the final weekend in April, which was due in part to a low comparison base from last year, caused by the 16 April 2016 earthquake.
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