According to STR, hotels in the Central and South America regions recorded mixed results in the three key performance metrics when reported in U.S. dollar constant currency during July 2016.
Compared with July 2015, the Central/South America region reported a 4.9% decrease in occupancy to 56.7%. Average daily rate (ADR), however, increased 10.1% to $89.84, and revenue per available room (RevPAR) grew 4.7% to $50.93.
Ecuador reported decreases across the three key performance metrics. The country's occupancy fell 13.0% to 59.4%; ADR was down 6.8% to $97.20; and RevPAR dropped 18.9% to $57.76. According to STR analysts, Ecuador's economy is heavily dependent on the oil industry. With crude oil prices down, and Ecuador being the only fully dollarized South American market, the country has become less competitive for exports compared with neighboring nations like Colombia and Peru. The pair of earthquakes that hit the country's coast on 11 July also affected performance.
Panama experienced increases in occupancy (+5.0% to 51.6%) and RevPAR (+1.4% to PAB49.22), whereas ADR dropped 3.4% to PAB95.36. Occupancy has increased year over year for six of the seven months in 2016, while ADR has decreased in five of the seven months. STR analysts believe that the country has become a more attractive tourist destination, as evidenced by a 6.0% year-to-date increase in Transient demand and a 2.9% rise in Group demand.
Peru recorded nearly flat occupancy (+0.2% to 65.8%) as well as increases in ADR (+5.2% to PEN442.12) and RevPAR (+5.4% to PEN290.94). The absolute occupancy followed a trend of the last several months, while the rise in ADR is likely due to a 5.6% demand increase in the Luxury and Upper Upscale segments.
In the month prior to hosting the Summer Olympics, Rio de Janeiro, Brazil, saw a 17.4% drop in occupancy to 48.2%. However, a 21.0% rise in ADR to BRL477.62 kept RevPAR flat at BRL230.07. STR analysts believe that the month's performance was consistent with the approach of the Olympics.
SÃ£o Paulo, Brazil, reported decreases across the three key performance metrics: occupancy (-0.3% to 58.4%), ADR (-3.9% to BRL297.36) and RevPAR (-4.2% to BRL173.69).
Rosario, Argentina, posted nearly flat occupancy (+0.3% to 66.9%) but a significant spike in both ADR (+48.9% to ARS1,169.57) and RevPAR (+49.3% to ARS782.02). While the market's occupancy remained flat, ADR increased significantly due to the devaluation of the Argentine Peso and inflation.