Central, South America Hotel Markets Post Mixed Results in Q2
According to STR, hotels in Central and South America recorded mixed Q2, 2016 results when reported in U.S. dollar constant currency.
Compared with the three key performance metrics from Q2 2015, the Central and South America region reported a 5.1% decrease in occupancy to 54.1%. Average daily rate was up 5.3% to $89.75. Revenue per available room was flat at $48.58.
Central and South America results were mixed when compared with June 2015. The region reported a 4.6% decrease in occupancy to 54.2%. ADR was up 1.7% to $86.48. RevPAR fell 2.9% to $46.88.Performance of featured countries for Q2 2016:Argentina
experienced a 5.5% decrease in occupancy to 51.9%, but a 53.2% spike in ADR to ARS1, 535.76 drove RevPAR up 44.7% to ARS797.21. The significant increase in rate came as a result of inflation. Occupancy has been down consistently in the country, but STR analysts expect demand to grow as a result of the new four-year Tourism National Plan. Brazil
reported decreases across the three key performance metrics. Occupancy fell 7.8% to 51.6%; ADR was down 3.6% to BRL279.08; and RevPAR dropped 11.1% to BRL143.88. STR analysts attribute consistent performance declines this year to the country's economic downturn, fear over the Zika virus and steady supply growth ahead of the Summer Olympics. Colombia
posted increases in each of the three key performance metrics: occupancy (+2.4% to 56.5%), ADR (+5.8% to COP262, 203.22) and RevPAR (+8.4% to COP148, 155.11). STR analysts note that a weakened Colombian Peso has led to strong tourism for the country. In addition, increased safety measures and government efforts to attract more tourists have helped demand performance (+8.3% year to date).
, saw decreases in occupancy (-3.3% to 72.4%) and RevPAR (-0.7% to PEN352.79). ADR in the market was up 2.7% to PEN487.56. Year to date, supply (+6.4%) has significantly outweighed demand (-0.6%).
, reported decreases across the three key performance metrics: occupancy (-4.1% to 62.6%), ADR (-5.0% to CLP88, 654.75) and RevPAR (-8.9% to CLP55, 526.39). April and May were positive months in the market, but June dragged down quarterly performance with a 34.5% decrease in RevPAR to CLP49, 789.28. June 2016 was average by historical standards but did not compare well with June 2015, when the country hosted the Copa América international football tournament.
San José, Costa Rica
, experienced double-digit growth in occupancy (+14.1% to 68.0%) and RevPAR (+15.0% to CRC34, 927.25). ADR in the market was nearly flat (+0.7% to CRC51, 360.93). Demand is up 9.4% year to date in San José, while supply has grown 1.2% during that time period.