STR reports hotel performance in South America and Central America during Q1
The market consultancy highlights that Rio de Janeiro has improved by the Carnival and less competition in the market. While Santiago de Chile has grown thanks to the growth of corporate travel
SRT has presented a report on the performance of the hotel industry during the first quarter of 2019. Hotels in the Central and South America region have obtained mixed results. The detail below:
Constant currency in US dollars, Q1 2019 versus Q1 2018
Central / South America
Occupation: + 0.6% to 58.1%.
Average daily rate (ADR): -4.5% to US $ 100.35
Revenue per available room (RevPAR): -4.0% to US $ 58.27
Local currency, Q1 2019 vs. Q1 2018
Rio de Janeiro
Occupation: + 12.2% to 63.8%
ADR: + 5.4% to BRL403.46
RevPAR: + 18.3% to BRL257.40
The absolute occupancy level was the best for a Q1 in Rio since 2015, while the value of ADR was the highest in a first quarter since 2016. STR analysts note that March specifically produced significant growth year after year in the market with a boost of Carnival. Employment and ADR increased by 25.0% and 30.0%, respectively, which led to a 62.5% growth in RevPAR. A decrease of 2.6% in the offer also contributed to the performance in the market during the quarter, which strengthened the participation of the hotel market. As noted in the STR Global Hotel Study, property closures have been common as an uncertain economic environment and the lack of consistent corporate and leisure businesses has created difficult operating conditions.
Occupation: -2.5% to 67.8%
ADR: + 6.2% at CLP82,917.47
RevPAR: + 3.5% to CLP56,208.62
According to STR analysts, the RevPAR on weekdays in the market grew by 4.7% during the first quarter, while the RevPAR of the weekend was mostly stable (-0.1%). This is an indicator of more corporate business in Santiago, which has been consistent in the market. Unlike other destinations in the region, Chile has shown relatively stable economic and political conditions, which has led to large brand investments in the country.
A note to the editors: all references to STR data and analysis should cite "STR" as the source. Avoid citing "STR, Inc.", "Smith Travel Research" or "STR Global" in the supply.