STR reports that hotels in the Central/South America region saw occupancy drop 6.6% to 56.5%, while ADR rose just 0.9% to $89.76 and RevPAR fell 5.8% to $50.75 in October 2016.
LONDON—Hotels in the Central/South America region reported mostly negative results in the three key performance metrics when reported in U.S. dollar constant currency, according to October 2016 data from STR.
Compared with October 2015, the Central/South America region reported a 6.6% decrease in occupancy to 56.5%. Average daily rate (ADR) was up 0.9% to US$89.76. Revenue per available room (RevPAR) dipped 5.8% to US$50.75.
Performance of featured countries for October 2016 (local currency, year-over-year comparisons):
Chile reported declines across the three key performance metrics. Occupancy fell 5.5% to 68.1%, ADR dropped 11.1% to CLP123.22 and RevPAR declined 16.0% to CLP83.88. The country experienced a 3.6% decline in demand after three consecutive months of demand growth. Santiago, the capital city, was hit the hardest, with a 7.2% drop in occupancy and a 17.9% decrease in ADR. STR analysts attribute the performance in part to sluggish economic conditions linked with the mining sector.
Ecuador saw a 1.3% increase in occupancy to 68.8%, and an inflation-driven 22.1% rise in ADR to US$123.90 pushed RevPAR up 23.8% to US$85.21. STR analysts note that strong supply growth (+2.9%) was outpaced by demand growth (+4.3%) during the month, helped by Habitat III, the United Nations’ Conference on Housing and Sustainable Urban Development (17-20 October).
Peru reported decreases in each of the three key metrics. Occupancy fell 2.5% to 70.5%, ADR dropped 23.9% to PEN436.10 and RevPAR fell 25.8% to PEN307.49. STR analysts attribute the country’s performance declines to a 29.4% fall in Group demand (bookings of 10 or more rooms) and a comparison with a strong month in 2015 when the country hosted annual meetings of the World Bank Group and the International Monetary Fund.
Performance of featured markets for October 2016 (local currency, year-over-year comparisons):
Buenos Aires, Argentina, posted 86.3% growth in RevPAR to ARS1,448.71 as a result of a 7.8% increase in occupancy to 69.4% and a 72.8% rise in ADR to ARS2,087.79. STR analysts note that Argentina’s hotel market has benefitted from an upward economic trend since the current government put financial policies in place for 2016. Due to inflation, ADR for the month reached its highest level on record. The IFSSH and IFSHT Triennial Congress (24-28 October) helped boost performance as well.
Panama City, Panama, experienced its first RevPAR increase (+5.7% to PAB50.97) since June. Occupancy drove growth for the month, up 8.5% to 53.7%, while ADR was down 2.6% to PAB94.88. STR analysts believe that hotels in Panama have benefited from a 7% increase in arrivals from Europe, although arrivals from the U.S. have declined compared with last year, as reported by the Panamanian Tourism Authority.
São Paulo, Brazil, reported its fourth month in a row with declines across all three key performance indicators. Occupancy decreased 5.8% to 58.3%, ADR dropped 10.0% to BRL308.22 and RevPAR fell 15.2% to BRL179.74. Meanwhile, new supply continued to enter the market (+1.2%), marking a fourth consecutive month with supply growth above 1.0%. STR analysts cite economic conditions in the country as another reason behind the negative performance.
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