Hotels in the Central/South America region reported mixed performance for total-year 2016 when reported in U.S. dollar constant currency, according to data from STR.
U.S. dollar constancy currency, year-over-year comparisons:
Central/South America region
- Occupancy: -4.3% to 55.6%
- Average daily rate (ADR): +9.3% to US$94.69
- Revenue per available room (RevPAR): +4.5% to US$52.64
Local currency, year-over-year comparisons:
- Occupancy: -6.8% to 52.9%
- ADR: +5.5% to BRL313.15
- RevPAR: -1.7% to BRL165.54
Brazil’s full-year ADR was aided greatly by the Rio Olympics. For the year, Rio de Janeiro posted a 22.3% ADR increase to BRL556.47, but a 12.8% drop in occupancy to 52.6%.
Brazil’s occupancy has declined for three consecutive years, due in large part to an influx of supply: 2014 (+2.7%), 2015 (+3.2%) and 2016 (+4.1%). That supply growth is expected to continue as Brazil’s current development pipeline represents 14.9% of its existing supply.
- Occupancy: +2.7% to 58.3%
- ADR: +4.4% to COP264,765.51
- RevPAR: +7.3% to COP154,324.81
STR analysts note that Colombia’s strong year was driven primarily by the first six months of 2016, when the country recorded double-digit RevPAR growth. Bogotá hotels recorded double-digit RevPAR growth (+10.7%) for the year, with a 6.2% increase in occupancy to 56.8% and a 4.2% rise in ADR to COP288,875.50.
- Occupancy: -3.8% to 62.7%
- ADR: +0.9% to PEN454.77
- RevPAR: -2.9% to PEN285.34
While overall performance for the year was down, Lima hosted APEC Peru 2016 in November, which drove the country’s RevPAR up 20.8% for that month. In December, however, Peru recorded a 10.0% year-over-year RevPAR decline.
Lima recorded a 3.2% decline in occupancy for the full year, at an actual level of 67.9%, while ADR increased 2.0% to PEN498.31.