STR: Central/South America hotel performance for July 2018
Region’s performance skewed by inflation in Venezuela. Lima hotel performance negative for third month in a row. Buenos Aires room rates soar due to currency devaluation
Hotels in the Central/South America region reported a slight occupancy decline with significantly higher room rates during July 2018, according to data from STR.
U.S. dollar constant currency, July 2018 vs. July 2017
Occupancy: -0.4% to 57.5%
Average daily rate (ADR): +85.0% to US$175.15
Revenue per available room (RevPAR): +84.3% to US$100.69
STR analysts note that the spike in ADR and RevPAR was due primarily to a 500% increase in ADR in Venezuela, caused by inflation of more than 2,000%.
Local currency, July 2018 vs. July 2017
Occupancy: -8.6% to 61.3%
ADR: -0.5% to PEN425.55
RevPAR: -9.1% to PEN260.92
Hotel performance in Lima was negative for the third month in a row, due to a 2.8% decline in demand (room nights sold) and an influx of supply (+6.4%). On a positive note, the 2018 IASIA-LAGPA International Conference was held 23-26 July, boosting RevPAR as much as 27.1% during that time period.
Buenos Aires, Argentina
Occupancy: -6.4% to 63.4%
ADR: +64.1% to ARS3,106.55
RevPAR: +53.6% to ARS1,969.56
The market experienced just six days of year-over-year occupancy growth during the month. STR analysts attribute a third consecutive month of ADR growth of more than 50% to the devaluation of the Argentine Peso.