LONDON – The hotel industry in the Central/South America region reported higher occupancy levels and lower average room rates year over year during May 2017, according to data from STR.

U.S. dollar constant currency, May 2017 vs. May 2016

Central/South America

  • Occupancy: +5.2% to 54.1%
  • Average daily rate (ADR): -1.5% to US$95.74
  • Revenue per available room (RevPAR): +3.7% to US$51.78

Local currency, May 2017 vs. May 2016

Argentina

  • Occupancy: +14.9% to 57.0%
  • ADR: +22.0% to ARS1,793.66
  • RevPAR: +40.2% to ARS1,023.27

ADR growth was particularly high during the third and fourth weeks of the month. In addition to the Labour Day (1 May) and May Revolution (25 May) holidays, STR analysts cited a number of events that helped lift performance: Feria Internacional del Libro de Buenos Aires (27 April-15 May), Buenos Aires Tango Championship (10-21 May), Feria Masticar food fair (11-14 May) and arteBA (24-27 May). For the month, Buenos Aires posted RevPAR growth of 43.5% with a 20.9% lift in occupancy and an 18.6% rise in ADR.

Brazil

  • Occupancy: +4.0% to 50.5%
  • ADR: -10.0% to BRL256.63
  • RevPAR: -6.4% to BRL129.48

The year-over-year occupancy increase was the first for Brazil in 2017. However, new supply (+4.2% year to date) pressuring absolute occupancy and ADR levels in addition to a difficult-to-match comparison from the months prior to the Rio Olympics last year created for overall negative performance, specifically in Rio de Janeiro (RevPAR: -29.5%).

Chile

  • Occupancy: +11.9% to 63.3%
  • ADR: -2.1% to CLP77,311.48
  • RevPAR: +9.6% to CLP48,902.83

STR analysts attribute part of the overall performance growth to a lower than usual comparison base from last year. At the same time, the country has reported 12 straight months with year-over-year decreases in ADR. However, the May decrease was by far the lowest decrease during that time.

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

Alex Anstett
Media & Communications Coordinator - STR
STR

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