Hotel Industry Performance Americas

Hotel Industry in the Central/South America Region Reports RevPAR Drop for May 2016

Compared with May 2015, the Central/South America region reported an 8.8% decrease in occupancy to 51.9%. Average daily rate was up 7.7% to US$88.86. Revenue per available room fell 1.8% to US$46.11.

Hotels in the Central/South America region recorded mixed May 2016 results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.

Compared with May 2015, the Central/South America region reported an 8.8% decrease in occupancy to 51.9%. Average daily rate was up 7.7% to US$88.86. Revenue per available room fell 1.8% to US$46.11.

Performance of featured countries for May 2016 (local currency, year-over-year comparisons):

Costa Rica experienced growth in occupancy (+13.3% to 60.0%) and RevPAR (+8.0% to CRC37,509.43). ADR in the country was down 4.6% to CRC62,511.88. Occupancy increased year over year for the 14th consecutive month, and absolute occupancy reached at least 60.0% for the first May since 2008. On the other hand, ADR has decreased seven months in a row and 12 of the last 17 months overall. STR analysts believe that lower rates have attracted more visitors to the country.

Ecuador saw double-digit declines in occupancy (-20.5% to 53.9%) and RevPAR (-25.6% to US$52.90). ADR dropped 6.4% to US$98.15. Occupancy has been generally down in Ecuador since the beginning of 2015, as the country has become a more expensive destination for neighboring countries like Colombia.

El Salvador reported decreases in occupancy (-3.3% to 64.3%) and RevPAR (-2.3% to US$62.88). ADR was up 1.0% to US$97.80. STR analysts note that the country’s hotel performance has held up even with Zika Virus concerns in the region.

Performance of featured markets for May 2016 (local currency, year-over-year comparisons):

Panama City, Panama, saw increases in occupancy (+9.1% to 50.2%) and RevPAR (+8.7% to PAB50.34). ADR was nearly flat (-0.4% to PAB100.33). After an extended period with significant supply growth between 2010 and 2015, growth in the metric has slowed to +0.3% in each of the last three months. And with consistently lower rates, demand has picked up significantly, reaching +9.4% in May.

Rio de Janeiro, Brazil, experienced double-digit declines in occupancy (-23.1% to 44.0%) and RevPAR (-19.8% to BRL194.70). ADR in the market rose 4.3% to BRL442.67. In preparation of the Summer Olympics, Rio de Janeiro’s supply has grown by double-digits for 13 consecutive months. Demand was down 10.3% in May, and STR analysts cite fear of the Zika Virus as well as political and economic unrest in the country.

Cartagena, Colombia, saw a 1.4 increase in occupancy to 50.6%. However, a 1.5% drop in ADR to COP322,560.48 kept RevPAR nearly flat (-0.2% to COP163,299.21). After a period of consistent double-digit growth, the market’s supply remained flat in May. At the same time, May is typically one of the slower months of the year for hotels in Cartagena.

About Constant Currency

Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR utilizes Constant Currency to present the most accurate performance summary of a region comprising different local currencies. All ADR and RevPAR calculations use 31 January 2016 exchange rates.

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