LONDON - Hotels in the Central/South America region recorded positive results in two of the three key performance metrics when reported in U.S. dollar constant currency, according to Q1 2016 data from STR.
Compared with Q1 2015, the Central/South America region reported a 4.6% decrease in occupancy to 55.8%. However, ADR was up 9.7% to US$96.39, and RevPAR rose 4.7% to US$53.79.
Performance of featured countries for Q1 2016 (local currency, year-over-year comparisons):
Argentina saw a 3.7% decrease in occupancy to 56.4% but significant growth in ADR (+54.8% to ARS1,637.70) and RevPAR (+49.1% to ARS923.90) due to the sharp devaluation of the Argentine peso and high inflation. When looking at individual months, March produced a 61.7% spike in RevPAR to ARS1,001.45 with occupancy aided by a visit from U.S. President Barack Obama and a FIFA World Cup qualifier between Argentina and Bolivia. In U.S. dollar terms, Argentina’s ADR for the quarter dropped 8.1%.
Argentina saw a 3.7% decrease in occupancy to 56.4% but significant growth in ADR (+54.8% to ARS1,637.70) and RevPAR (+49.1% to ARS923.90) due to the sharp devaluation of the Argentine peso and high inflation. When looking at individual months, March produced a 61.7% spike in RevPAR to ARS1,001.45 with occupancy aided by a visit from U.S. President Barack Obama and a FIFA World Cup qualifier between Argentina and Bolivia. In U.S. dollar terms, Argentina’s ADR for the quarter dropped 8.1%.
Colombia recorded a 5.0% rise in occupancy to 58.0% as well as double-digit growth in ADR (+10.0% to COP281,624.47) and RevPAR (+15.5% to COP163,452.71). A 10.7% increase in demand for the quarter was more than enough to outweigh a 5.5% rise in supply. In addition, rates were increased during a time of weakness for the Colombian peso.
Costa Rica experienced increases in occupancy (+4.3% to 76.5%) and RevPAR (+2.0% to CRC65,853.67), while ADR fell 2.2% to CRC86,067.27. Demand remained strong in the quarter (+5.2%), while supply was relatively flat (+0.9%). As a result, occupancy reached its highest level for a quarter since Q1 2008.
Performance of featured markets for Q1 2016 (local currency, year-over-year comparisons):
Panama City, Panama, reported nearly flat occupancy (+0.4% to 55.1%) as well as decreases in ADR (-2.4% to PAB101.86) and RevPAR (-2.0% to PAB56.13). Supply (+3.2%) and demand (+3.6%) grew at a similar pace during the quarter, although demand fell 0.9% in March.
Panama City, Panama, reported nearly flat occupancy (+0.4% to 55.1%) as well as decreases in ADR (-2.4% to PAB101.86) and RevPAR (-2.0% to PAB56.13). Supply (+3.2%) and demand (+3.6%) grew at a similar pace during the quarter, although demand fell 0.9% in March.
Rio de Janeiro, Brazil, saw a 2.0% dip in occupancy to 63.5% but a 3.8% increase in ADR to BRL501.93 pushed RevPAR up 1.8% to BRL318.60. Rio de Janeiro has reported double-digit supply growth for nine consecutive months as the market prepares for the 2016 Olympics. Strong demand growth (+10.6%) through the first quarter of the year softened the impact of new supply on occupancy.
Quito, Ecuador, reported double-digit declines in occupancy (-21.6% to 54.1%) and RevPAR (-20.3% to US$59.23). ADR in the market was up 1.7% to US$109.53. Q1 2016 followed a trend of double-digit occupancy decreases in Quito since the eruption of the Cotopaxi volcano. As occupancy falls, hoteliers have placed more of an emphasis on rate to maximize revenue.
Central/South America performance for March 2016 (U.S. dollar constant currency, year-over-year comparisons):
Compared with March 2015, the Central/South America region reported a 7.5% decrease in occupancy to 56.6%. ADR was up 7.6% to US$95.51. RevPAR remained nearly flat (-0.5% to US$54.02).
Compared with March 2015, the Central/South America region reported a 7.5% decrease in occupancy to 56.6%. ADR was up 7.6% to US$95.51. RevPAR remained nearly flat (-0.5% to US$54.02).
