Brazilian hospitality exceeds 2019 levels

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Brazilian hospitality exceeds 2019 levels
Source: Radisson Hospitality, Inc.
October 26, 2021

According to a STR report, ADR is higher than pre-pandemic levels

Brazil's hotel industry has outperformed its 2019 peers in average daily rate (ADR) for two of the last three months, according to September 2021 data from STR.

The country's ADR reached R $ 327.21 in September, 6.4% higher than that of the comparable pre-pandemic of September 2019 (R $ 307.56). Brazil also outperformed its 2019 comparable during July with an ADR of BRL336.45.

"September is typically one of the weakest ADR months in Brazil, but the country's price rally has been strong since the first months of this year," said Patricia Boo, STR area director, Central and South America. "Hotels are recovering ADR much faster than occupancy due to a shift towards domestic leisure demand, as well as a high volume of closures in lower tier classes."

The country's 49.4% occupancy level in September 2021 was the highest of the pandemic era, but still 18.9% lower than in September 2019.

"Hoteliers have relied almost entirely on domestic demand, leading to strong performance in popular domestic vacation destinations outside of major markets," Boo said. “While domestic destinations should anticipate continued strong performance in the near term, ADR is likely to weaken over time as international outbound travel resumes. Attracting international arrivals will help offset the loss of domestic demand when that happens”.


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