The Hotel Industry in the Central/South America Region Reports Positive Results for 2017
The Central/South America region reported occupancy rose 2.2% in 2017 to 56.5%, while ADR increased just 0.7% to $105.24 and RevPAR rose 2.8% to $59.45.
Hotels in the Central/South America region reported positive year-over-year results in the three key performance metrics during 2017, according to data from STR.
U.S. dollar constant currency, 2017 vs. 2016
- Occupancy: +2.2% to 56.5%
- Average daily rate (ADR): +0.7% to US$105.24
- Revenue per available room (RevPAR): +2.8% to US$59.45
Local currency, 2017 vs. 2016
- Occupancy: +9.7% to 62.1%
- Average daily rate (ADR): +18.9% to ARS1,938.05
- Revenue per available room (RevPAR): +30.4% to ARS1,203.03
A spike in demand (+9.9%) paired with nearly flat supply (+0.2%) pushed Argentina’s occupancy above 60% for the first time since 2011. Additionally, ADR growth was significant due to inflation, even though the country’s inflation rate was higher for the year. Performance growth was especially pronounced in Buenos Aires: occupancy (+11.2%), ADR (+16.2%) and RevPAR (+29.2%).
- Occupancy: +0.5% to 53.1%
- Average daily rate (ADR): -12.5% to BRL277.75
- Revenue per available room (RevPAR): -12.1% to BRL147.36
Demand (+3.8%) outpaced continued supply growth (+3.3%) in the country, leading to a slight uptick in occupancy. Significant ADR levels could not be met, however, due to the Summer Olympics comparison from 2016. While RevPAR in Rio de Janeiro dropped 41.6% from 2016 to 2017, other areas of the country began to show recovery from the downturn. São Paulo, for example, registered a 3.4% rise in RevPAR.
- Occupancy: +0.8% to 57.0%
- Average daily rate (ADR): -0.8% to COP259,151.07
- Revenue per available room (RevPAR): flat at COP147,784.05
Despite a 4.0% increase in demand, the country recorded flat performance due to supply growth (+3.1%) limiting occupancy gains and diminishing hotelier pricing power. A similar trend was seen in Bogotá, where occupancy rose 5.7%, but ADR fell 4.3%.
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