- Cartagena posts double-digit rate increases even as demand slows
- Buenos Aires hotel performance lifted by inflation
Hotels in the Central/South America region reported mixed performance results during the second quarter of 2019, according to data from STR.
U.S. dollar constant currency, Q2 2019 vs. Q2 2018
• Occupancy: +2.4% to 56.4%
• Average daily rate (ADR): -42.9% to US$94.48
• Revenue per available room (RevPAR): -41.5% to US$53.28
STR analysts note that the region’s ADR and RevPAR comparisons are significantly affected by currency fluctuations.
Local currency, Q2 2019 vs. Q2 2018
• Occupancy: +0.7% to 57.1%
• ADR: +10.5% to COP361,650.53
• RevPAR: +11.2% to COP206,592.55
Demand (+1.9%) outgrew supply (+1.2%), but the demand percentage change was the lowest for the market since Q3 2017. Overnight tourist arrivals are expected to increase 3.2% for 2019 as a whole, according to Oxford Economics, but that growth rate would be less than 2018 (+7.4%).
Buenos Aires, Argentina
• Occupancy: -3.6% to 63.6%
• ADR: +79.3% to ARS5,319.15
• RevPAR: +72.9% to ARS3,382.77
The absolute ADR and RevPAR levels are the highest for a Q2 in STR’s Buenos Aires database. When looking at individual months, April was the reason behind the quarter’s occupancy decline, as the month produced a 10.4% decrease in the metric. STR analysts note that the significant rate increases in the market are artificial due to the inflation of the Argentine Peso. When measured in local currency, ADR was up 78.0% for the first half of the year. When measured in U.S. dollars, ADR was down 7.4%.
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