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Mon, 28 March 2016

Hotels in Central / South America Report Decrease in OR; Increase in ADR and RevPAR

According to February 2016 data compiled by STR, 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.

Compared with February 2015, hotels in 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-on-year comparisons):

Brazil saw occupancy fall 3.4% to 52.3%, but a 5.3% rise in ADR to BRL 322.27 pushed a 1.7% increase in RevPAR to BRL 168.40. 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 CLP 85,163.94, and RevPAR increased as a result by 1.4% to CLP 50,285.40. STR analysts note that ADR has led to nine consecutive months of RevPAR growth in Chile even with a slowdown in the countrys 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 countrys economy.

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

Bogot, Colombia, saw a 9.6% increase in occupancy to 65.8% as well as double-digit growth in ADR (+14.1% to COP 319,117.78) and RevPAR (+25.1% to COP 209,869.81). 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 Bogot, 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 PEN 477.98) pushed RevPAR (+3.9% to PEN 313.80) 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. ADR remained in line with previous months and was the highest for a February in the market since 2009.

So 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 BRL 345.94; and RevPAR increased 6.6% to BRL 186.76.

See other recent news regarding: STR, ADR, RevPAR

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