Although the Central/South America region reported occupancy increased 0.6% to 58% in August, ADR and RevPAR plummeted, with ADR falling 25% to $99.09 and RevPAR dropping 24.5% to $57.48.
Hotels in the Central/South America region reported nearly flat occupancy with year-over-year rate declines during August 2017, according to data from STR.
U.S. dollar constant currency, August 2017 vs. August 2016
- Occupancy: +0.6% to 58.0%
- Average daily rate (ADR): -25.0% to US$99.09
- Revenue per available room (RevPAR): -24.5% to US$57.48
STR analysts note that the steep ADR decline was due mostly to numbers in Brazil and a comparison with the month of 2016 Summer Olympics in Rio. Brazil represents a large portion of the region’s hotel supply.
Local currency, August 2017 vs. August 2016
- Occupancy: -4.3% to 54.7%
- ADR: -46.6% to BRL263.45
- RevPAR: -48.9% to BRL144.04
Due to the aforementioned Olympics comparison, Rio de Janeiro reported a 40.6% drop in occupancy and a 73.4% decline in ADR. At the same time, São Paulo hotels managed to grow both metrics for the month, resulting in a 19.0% increase in RevPAR. STR analysts note that supply growth will likely continue to affect Brazil’s hotel performance. The country added a significant amount of new rooms over the past several years due to the 2014 FIFA World Cup and the Rio Olympics, and the current pipeline represents 12.5% of Brazil’s existing room inventory.
- Occupancy: +5.5% to 61.7%
- ADR: -2.0% to US$94.18
- RevPAR: +3.4% to US$58.12
Occupancy has grown year over year during each month in 2017, but Ecuador’s rates have fallen in all but one month since February 2015 due to the country’s economic recession. Oxford Economics projects that the country’s moderate economic recovery during the first half of 2017 will slow for the remainder of the year, with declines expected for 2018. August hotel demand was strong in Quito, and occupancy was up 17.9% compared with the same month last year. STR analysts note that the June earthquake has not had a noticeable effect on hotel performance.
- Occupancy: +2.3% to 71.0%
- ADR: -2.9% to PEN429.07
- RevPAR: -0.7% to PEN304.44
Following a 6.1-magnitude earthquake on 13 August, Peru’s ADR declined year over year for each day remaining in the month. Cusco was the only major Peruvian market to post significant RevPAR growth (+9.7%) in August, mainly driven by an increase in Transient demand. According to STR’s latest pipeline figures, the country’s current number of rooms under contract represents 16.2% of its existing hotel supply.
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