Hotels in the Central/South America region reported positive results in two of the three key performance metrics when reported in U.S. dollar constant currency, according to January 2016 data compiled by STR, Inc. and STR Global.
Compared with January 2015, the Central/South America region reported a 2.8% decrease in occupancy to 54.5%. However, average daily rate grew 10.7% to US$95.34, and revenue per available room increased 7.6% to US$51.94.
Performance of featured countries for January 2016 (local currency, year-over-year comparisons):
Colombia posted a 4.9% increase in occupancy to 51.0% as well as double-digit growth in ADR (+14.8% to COP293,829.40) and RevPAR (+20.4% to COP149,809.02). STR Global analysts have seen a stronger emphasis on rate increases in the country due to inflation and a weakened Colombian peso.
Costa Rica saw increases in occupancy (+3.9% to 73.9%) and RevPAR (+4.0% to CRC63,663.23). ADR in the country remained nearly flat (+0.1% to CRC86,130.77). Escalating demand (+4.8%) and steady supply (+0.9%) allowed hoteliers in Costa Rica to build on a strong 2015.
Panama reported growth in occupancy (+8.1% to 56.0%) and RevPAR (+4.4% to PAB58.80). ADR dropped 3.5% to PAB105.07. Last year was the first since 2007 where demand growth in Panama outweighed supply, and that trend continued in January with demand growth at +12.2% and supply at +3.8%.
Performance of featured markets for January 2016 (local currency, year-over-year comparisons):
Buenos Aires, Argentina, reported a 13.8% drop in occupancy to 51.1%, but a 52.4% spike in ADR to ARS1,739.40 drove a 31.4% increase in RevPAR to ARS888.51. The significant jump in rate came as new government policies put in place in December resulted in a sharp devaluation of the Argentine Peso.
Rio de Janeiro, Brazil, experienced a 1.8% decrease in occupancy to 68.0% but increases in ADR (+6.9% to BRL493.09) and RevPAR (+5.0% to BRL335.06). STR Global analysts note that rate was pushed by the week following New Year’s.
About Constant Currency
Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR Global utilizes Constant Currency to present the most accurate performance summary of a region comprising different local currencies. All ADR and RevPAR calculations use 31 January 2016 exchange rates.
About STR Global:
STR Global provides clients - including hotel operators, developers, financiers, analysts and suppliers to the hotel industry - access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, STR Analytics and Hotel News Now. For more information, please visit www.strglobal.com.
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