Mon, 27 June 2016

Hotels in Central/South America Report May 2016 Decrease in OR and RevPAR

According to data compiled by STR, 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.

Compared with May 2015, ADR in the region was up 7.7% to US$88.86 but RevPAR fell 1.8% to US$46.11 and occupancy for the month dropped 8.8% to 51.9%.

Performance of featured countries for May 2016 (local currency, year-on-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-on-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.

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.

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.

Performance of featured markets for May 2016 (local currency, year-on-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 Janeiros 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 an 1.4 increase in occupancy to 50.6%. However, an 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 markets supply remained flat in May. At the same time, May is typically one of the slower months of the year for hotels in Cartagena.

See other recent news regarding: STR, ADR, RevPAR

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