Hotel Industry Performance Americas

Hotel Industry in the Central/South America Region Reports Strong RevPAR Growth for February 2016

Compared with February 2015, the Central/South America region reported a 2.8% decrease in occupancy to 56.6%. However, ADR was up 10.7% to US$97.73, and RevPAR rose 7.6% to US$55.32.

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

Compared with February 2015, the Central/South America region reported a 2.8% decrease in occupancy to 56.6%. However, ADR was up 10.7% to US$97.73, and RevPAR rose 7.6% to US$55.32.

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

Brazil saw occupancy fall 3.4% to 52.3%, but a 5.3% rise in ADR to BRL322.27 pushed a 1.7% increase in RevPAR to BRL168.40. Supply continued to grow in the country, increasing 3.5% in February, while demand remained flat, resulting in the dip in occupancy. According to Oxford Economics, the Brazilian real held up in February despite further credit rating downgrades and forecasted weakness against the U.S. dollar. However, STR analysts note that the ADR growth in the country was well below inflation rate.

Chile experienced a 3.8% decrease in occupancy to 59.0%. However, ADR was up 5.4% to CLP85,163.94, and RevPAR increased as a result by 1.4% to CLP50,285.40. STR analysts note that ADR has led to nine consecutive months of RevPAR growth in Chile even with a slowdown in the country’s economy. According to Focus Economics, after a discouraging January in Chile, February indicators showed recovery in copper prices and the Chilean peso while business and consumer sentiment rose.

Ecuador reported decreases across the three key performance metrics: occupancy (-9.5% to 60.4%), ADR (-1.9% to US$101.51) and RevPAR (-11.2% to US$61.35). Demand dropped 9.5% in February, the fourth straight month with a decrease near or above double-digits in the metric. At the same time, supply has remained stable, and the drop in oil prices has had a strong effect on the country’s economy.

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

Bogotá, Colombia, saw a 9.6% increase in occupancy to 65.8% as well as double-digit growth in ADR (+14.1% to COP319,117.78) and RevPAR (+25.1% to COP209,869.81). The double-digit rise in RevPAR follows the trend of the last three months and eight of the last nine months overall. ADR was the highest on record for Bogotá, while occupancy reached its highest level since November 2013.

Lima, Peru, experienced a 7.7% drop in occupancy to 65.7%, but a double-digit lift in ADR (+12.6% to PEN477.98) pushed RevPAR (+3.9% to PEN313.80) into positive figures. A 7.8% increase in supply coupled with nearly flat demand led to the lowest absolute occupancy level for a February in Lima since 2012. On the other hand, ADR remained in line with previous months and was the highest for a February in the market since 2009.

São Paulo, Brazil, posted increases in each of the three key performance metrics. Occupancy in the market rose 0.7% to 54.0%; ADR was up 5.8% to BRL345.94; and RevPAR increased 6.6% to BRL186.76. STR analysts note that corporate demand remains stable in Brazil.

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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