Hotels in the Central/South America region reported negative performance results in January 2017, according to data from STR.
U.S. dollar constant currency, year-over-year comparisons:
Central/South America region
- Occupancy: -5.2% to 52.3%
- Average daily rate (ADR): -6.9% to US$101.25
- Revenue per available room (RevPAR): -11.8% to US$52.97
Local currency, year-over-year comparisons:
- Occupancy: +10.3% to 72.9%
- ADR: -6.4% to CLP81,846.24
- RevPAR: +3.2% to CLP59,626.46
The month resulted in Chile’s highest year-over-year occupancy increase since July 2015. Growth was driven primarily by Santiago, and in particular, the business district of Providencia—where RevPAR increased 33.8%. According to Turismo Chile, international tourism arrivals to Chile increased 26% in 2016 and are projected to rise another 14% in 2017. ADR, on the other hand, has declined for eight consecutive months in the country. STR analysts believe that ADR performance has been mostly due the market absorbing new supply (+2.2 in 2016, +1.7% in January 2017) in an economic climate where exchange rates dropped.
- Occupancy: +0.5% to 73.6%
- ADR: -8.4% to CRC78,613.64
- RevPAR: -7.9% to CRC57,879.45
The first quarter is generally the high performance season for Costa Rica hotels. January’s moderate occupancy growth was mainly driven by San Jose, which posted 3.7% growth in occupancy and a 7.6% rise in RevPAR. ADR was down across most of the rest of the country. Costa Rica currently has more than 2,200 hotel rooms in the pipeline, with a majority of those in development outside of San Jose.
- Occupancy: +8.0% to 55.8%
- ADR: -7.6% to US$94.00
- RevPAR: -0.2% to US$52.44
Demand growth (+13.6%) more than doubled significant supply growth (+5.2%), resulting in Ecuador’s highest year-over-year increase in occupancy for any month since September 2014. STR analysts note that Ecuador became expensive for interregional demand as the only U.S. dollar country in the region. As a result, hoteliers likely had to lower rates.
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