Trends

The Hotel Industry in the Central/South America Region Reports Positive Results for January 2018

Argentina posts highest January occupancy since 2008 - Costa Rica registers significant performance growth - Peru shows double-digit occupancy growth but lower rates
Street scene in Buenos Aires - Photo by Henrique Félix on Unsplash
Argentinan hotels posts highest January occupancy since 2008

Hotels in the Central/South America region reported growth across the three key performance metrics, according to January 2018 data from STR. 

U.S. dollar constant currency, January 2018 vs. January 2017 

Central/South America

  • Occupancy: +7.7% to 56.2%
  • Average daily rate (ADR): +5.6% to US$106.24
  • Revenue per available room (RevPAR): +13.7% to US$59.74 

Local currency, January 2018 vs. January 2017 

Argentina

  • Occupancy: +7.4% to 58.2%
  • ADR: +24.7% to ARS2,259.51
  • RevPAR: +34.0% to ARS1,314.49 

The absolute occupancy level was the highest for any January in Argentina since 2008. The month also was the fourth in a row with ADR growth above 20%. Significant year-over-year increases in room rates have remained consistent for several years due to inflation. Also helping performance is a lack of significant supply growth in the country. 

Costa Rica

  • Occupancy: +5.9% to 77.3%
  • ADR: +18.4% to CRC101,098.66
  • RevPAR: +25.4% to CRC78,179.83 

Occupancy reached its highest level for any January in STR’s Costa Rica database. STR analysts attribute the performance to a stable supply level and a positive economic outlook in the country. 

Peru

  • Occupancy: +15.1% to 52.9%
  • ADR: -2.8% to PEN395.39
  • RevPAR: +11.9% to PEN209.03 

The occupancy level was the highest for a January in Peru since 2013, while ADR dropped to its lowest point since 2014. While the occupancy figure was higher than the January average in the country, the year-over-year growth rate was boosted by a comparison with a low occupancy month in 2017. 

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