Hotels in Central/South America Report Increase in ADR and RevPAR

According to data compiled by STR, hotels in the Central/South America region recorded mixed year-end 2015 results when reported in U.S. dollar constant currency.

Compared with 2014, the Central/South America region reported a 3.9% decrease in occupancy to 58.1%, ADR grew 4.5% to US$117.76, while RevPAR increased 0.4% to US$68.45.

Performance of featured countries for year-end 2015 (local currency, year-on-year comparisons):

Argentina saw occupancy remain nearly flat (-0.5% to 58.1%), but a 13.4% rise in ADR to ARS1,087.54 drove a 12.8% increase in RevPAR to ARS631.72. ADR has now increased year-on-year for 39 consecutive months, including a 33.0% spike in December 2015.

Brazil reported decreases in each of the three key performance metrics: occupancy (-7.7% to 56.6%), ADR (-5.8% to BRL282.16) and RevPAR (-13.1% to BRL159.78).

Peru experienced a 2.7% dip in occupancy to 65.0% but increases in ADR (+10.1% to PEN457.39) and RevPAR (+7.1% to PEN297.37). October was the strongest month of 2015 for Peru (RevPAR +30.4%) as Lima hosted the Annual Meetings of the International Monetary Fund and the World Bank Group.

Performance of featured markets for year-end 2015 (local currency, year-on-year comparisons):

Bogotá, Colombia, saw a 1.6% decrease in occupancy to 54.5% but double-digit growth in ADR (+12.2% to COP282,940.39) and RevPAR (+10.4% to COP154,218.73). According to Oxford Economics, a drop in the value of the Colombian Peso versus the U.S. Dollar pushed inflation in the country. This resulted in continuous ADR growth throughout 2015. Occupancy, however, declined year-on-year during eight months of the year.

Panama City, Panama, reported decreases in the three key performance measurements: occupancy (-0.6% to 50.5%), ADR (-4.3% to PAB100.81) and RevPAR (-4.9% to PAB50.90). Strong supply growth (+7.1%) pressured occupancy and ADR in the market.

Rio de Janeiro, Brazil, reported double-digit declines across the three key performance metrics: occupancy (-11.7% to 64.0%), ADR (-12.9% to BRL470.03) and RevPAR (-23.1% to BRL300.97). The city experienced double-digit supply growth in each of the last four months of the year in preparation for the 2016 Olympics. The year ended well for the market as Rio de Janeiro’s New Year’s Eve fireworks show at Copacabana Beach led to an absolute occupancy of 91.0% and ADR of BRL1177.39 on 31 December.

Central/South America region performance for December 2015 (U.S. dollar constant currency, year-on-year comparisons):

Compared with December 2014, the Central/South America region reported a 4.4% decrease in occupancy to 50.8%. However, ADR grew 10.8% to US$131.50, and RevPAR increased 5.9% to US$66.84.

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