STR reports hotel performance in Central and South America during Q2
Cartagena records double-digit rate increases even when demand slows. Buenos Aires Performance has grown due to inflation
Hotels in the Central / South America region reported mixed performance results during the second quarter of 2019, according to STR data.
Constant currency in US dollars, Q2 2019 vs. Q2 2018
Central / South America
Occupation: + 2.4% to 56.4%
Average daily rate (ADR): -42.9% to US $ 94.48
Revenue per available room (RevPAR): -41.5% to US $ 53.28
STR analysts point out that comparisons of ADR and RevPAR in the region are significantly affected by currency fluctuations.
Local currency, Q2 2019 vs. Q2 2018
Occupation: + 0.7% to 57.1%
ADR: + 10.5% at COP361,650.53
RevPAR: + 11.2% at COP206,592.55
Demand (+ 1.9%) exceeded supply (+ 1.2%), but the percentage change in demand was the lowest for the market since the third quarter of 2017. Tourist arrivals are expected overnight. increase 3.2% for 2019 in general, according to Oxford Economics, but that growth rate would be lower than 2018 (+ 7.4%).
Buenos Aires, Argentina
Occupation: -3.6% to 63.6%
ADR: + 79.3% to ARS5,319.15
RevPAR: + 72.9% to ARS3,382.77
The absolute levels of ADR and RevPAR are the highest for a Q2 in the STR database in Buenos Aires. When observing the individual months, April was the reason behind the decrease in the quarter's occupation, since the month produced a 10.4% decrease in the metric. STR analysts point out that the significant increases in market rates are artificial due to the inflation of the Argentine peso. When measured in local currency, the ADR rose 78.0% in the first half of the year. When measured in US dollars, the ADR fell 7.4%.