Hotels in the Central/South America region reported positive results in the three key performance metrics during July 2017, according to data from STR.
U.S. dollar constant currency, July 2017 vs. July 2016
- Occupancy: +3.2% to 58.1%
- Average daily rate (ADR): +0.2% to US$97.86
- Revenue per available room (RevPAR): +3.5% to US$56.83
Local currency, July 2017 vs. July 2016
- Occupancy: +8.6% to 62.3%
- ADR: +25.6% to ARS1,964.17
- RevPAR: +36.5% to ARS1,222.96
This marked Argentina’s highest actual occupancy level for the month of July since 2011. According to STR analysts, an increase in flight options to the country and South America as a whole should continue to help the market’s hotels. Buenos Aires recorded a 14.2% lift in demand for July, its third consecutive month of double-digit demand growth.
- Occupancy: +4.1% to 72.5%
- ADR: +1.0% to CLP76,710.70
- RevPAR: +5.1% to CLP55,599.85
Chile’s performance was driven primarily by weekend business, with occupancy up 5.7% compared with a 2.9% increase for weekdays, indicating uplift in leisure bookings. Through the first seven months of the year, the country’s ADR was down 5.7%, in line with a weakened economy due to a drop in the global price of copper. STR analysts note that Chile’s economy is expected to gain momentum in the second half of 2017, with a recovery in mining investment. The country currently has 22 hotel projects in the pipeline, accounting for 3,325 rooms.
- Occupancy: +2.9% to 56.5%
- ADR: +2.0% to COP257,456.14
- RevPAR: +5.0% to COP145,558.86
July marks Colombia’s second month of RevPAR growth in 2017, including a 9.1% increase in May. The market has experienced a last-minute influx in supply development as the government’s tax break window for hotels built between 2003 and 2017 draws to a close. STR analysts note that the country’s June peace settlement with the Farc rebels could help stimulate hotel demand in the long term.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
Logos, product and company names mentioned are the property of their respective owners.