Hotels in the Americas region recorded positive results in the three key performance metrics when reported in U.S. dollar constant currency, according to July 2015 data compiled by STR, Inc. and STR Global.
Compared to July 2014, the Americas region reported a 2.2% increase in occupancy to 74.8%, a 5.8% increase in average daily rate to US$124.78 and an 8.2% increase in revenue per available room to US$93.37.
Performance of featured countries for July 2015 (local currency, year-over-year comparisons):
Argentina experienced a 1.4% increase in occupancy to 59.1% as well as double-digit growth in ADR (+15.6% to ARS1,054.58) and RevPAR (+17.2% to ARS623.01). Inflation led to the increases in ADR and RevPAR as well as a 17.6% year-over-year increase in revenue.
Due to another month with difficult-to-match comparisons from the FIFA World Cup 2014, Brazil reported decreases in the three key performance measurements: occupancy (-2.7% to 58.5%), ADR (-28.1% to BRL254.24) and RevPAR (-30.0% to BRL148.79). Supply has grown year-to-date at 2.9% in the country when compared to the same time period in 2014, while demand is down 4.2%.
Colombia saw a 2.8% increase in occupancy to 58.0%, a 9.2% rise in ADR to COP251,490.64 and a 12.2% increase in RevPAR to COP145,766.23. According to Oxford Economics, inflation in Colombia is expected to reach 4.2%, and the value of the Colombian Peso dropped 9% in July.
Performance of featured markets for July 2015 (local currency, year-over-year comparisons):
Occupancy in Bogotá, Colombia, decreased 0.2% to 55.5%. However, ADR in the market was up 15.0% to COP285,912.93, and RevPAR increased 14.7% to COP158,685.22. STR Global analysts expect the number of visitors to Bogotá to increase as KLM Royal Dutch Airlines re-installed a flight from Amsterdam to Bogotá in March 2015, and Avianca increased its frequency from London to Bogotá in early July.
Panama City, Panama, saw an increase in occupancy (+4.7% to 50.3%), but decreases in ADR (-6.2% to PAB99.33) and RevPAR (-1.8% to PAB50.00). Supply growth has outpaced demand for several years in the market. Both metrics have grown year to date at 8.5%, but high supply continues to pressure rate.
São Paulo, Brazil, reported a 1.9% decrease in occupancy to 59.3%, a 19.1% drop in ADR to BRL308.82 and a 20.7% decline in RevPAR to BRL183.18. The market was unable to match comparisons from last year’s World Cup even while hosting events such as ForMóbile, Feira Francal and CeMAT South America.
Additional performance data
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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 2015 exchange rates.
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