According to STR, hotels in Central and South America had mixed performance in the second quarter of 2016 when measured in US dollar constant currency.
The Central and South America region posted a 5.1 percent decrease in occupancy to 54.1 percent compared to the three main performance metrics from Q2 2015. The average daily rate was $89.75, up 5.3 percent. The revenue per available room remained unchanged at $48.58. doha property finder
As compared to June 2015, the results in Central and South America were mixed. The occupancy rate in the area fell by 4.6 percent to 54.2 percent. ADR was trading at $86.48, up 1.7 percent. The revenue per available room (RevPAR) dropped 2.9 percent to $46.88.
Performance of featured countries in Q2 2016: Argentina's occupancy dropped 5.5 percent to 51.9 percent, but a 53.2 percent increase in ADR to ARS1, 535.76 pushed RevPAR up 44.7 percent to ARS797.21. Inflation caused the substantial increase in the pace. The country's occupancy has been consistently low, but STR analysts predict that demand will increase as a result of the current four-year Tourism National Plan.
Brazil saw declines in all three main performance indicators. Occupancy dropped 7.8% to 51.6 percent, ADR dropped 3.6 percent to BRL279.08, and RevPAR fell 11.1 percent to BRL143.88. The country's economic downturn, fear of the Zika virus, and steady supply growth ahead of the Summer Olympics, according to STR analysts, have all contributed to this year's output declines.
Each of the three main performance indicators in Colombia increased: occupancy (+2.4 percent to 56.5 percent), ADR (+5.8% to COP262, 203.22), and RevPAR (+8.4% to COP148, 155.11). According to STR analysts, the weakening of the Colombian peso has resulted in increased tourism in the region. Furthermore, improved security measures and government attempts to draw more visitors have aided demand (+8.3% year to date).
The city of Lima, Peru, saw a drop in occupancy (-3.3 percent to 72.4 percent) and revenue per available room (RevPAR) (-0.7 percent to PEN352.79). The ADR was up 2.7 percent to PEN487.56 on the market. To this point in the year, supply (+6.4%) has greatly outweighed demand (-0.6 percent ).
Santiago, Chile, saw declines in all three main performance indicators: occupancy (-4.1 percent to 62.6 percent), ADR (-5.0 percent to CLP88, 654.75), and RevPAR (-5.0 percent to CLP88, 654.75). (-8.9 percent to CLP55, 526.39). In the industry, April and May were positive months, but June dragged down quarterly results with a 34.5 percent drop in RevPAR to CLP49, 789.28. By historical standards, June 2016 was decent, but it paled in comparison to June 2015, when the country hosted the Copa América international football tournament.
In San José, Costa Rica, occupancy increased by 14.1 percent to 68.0 percent, and RevPAR increased by 15.0 percent to CRC34, 927.25. The market's ADR was virtually unchanged (+0.7 percent to CRC51, 360.93). In San José, demand has increased by 9.4% year to date, while supply has increased by 1.2 percent.
The pipeline for hotel development in Latin America dries up in June.
According to STR's Central and South America Pipeline Report from June 2016, the area has over 66,352 hotel rooms under contract in 417 ventures. The number reflects a 3.3 percent drop in rooms under contract compared to June 2015, and a 5.1 percent drop in rooms under construction year over year.
Projects in the In Construction, Final Planning, and Planning stages are included in the Under Contract details, but projects in the unconfirmed stage are not.
For the month, the area announced 28,680 rooms in 176 projects under construction.
Upper Midscale (21.5 percent with 14,246 rooms), Midscale (20.4 percent with 13,561 rooms), and Upscale (20.0 percent with 13,561 rooms) were the three Chain Scale segments that accounted for at least 20.0 percent of the rooms Under Contract throughout the area (20.1 percent with 13,318 rooms).
Only the luxury segment (21.0 percent with 6,024 rooms) accounted for 20.0 percent or more of the region's total during the In Construction process.