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Latin America Market Update Q2 2015 from STR Global

Spotlight Americas – Constant Currency 

RevPAR, June 2015 YTD, USD

A focus on Latin America’s performance: June’s performance affects South American hotels

In the first half of 2015, the total Americas region reported a +6.9% increase (USD Constant Currency*) in revenue per available room (RevPAR), achieving USD 77.91. The increase in hotel performance was driven mainly by ADR (+4.8%). Overall, South America was the only sub-continent to experience negative RevPAR growth for the period, which declined by -1.7% to USD68.08. This was the result of declined Occupancy by -3.3% to 58.5% when compared to the same period the previous year. 

*Constant Currency is an exchange rate that eliminates the effect of exchange rate fluctuations.

C&S America - 12 Month Moving Average

ADR and Occ, Jan 2013- June 2015, USD, Constant Currency

  

C&S America Class Comparison

June 2015 YTD, Occ, ADR and RevPAR, USD, Constant Currency

Occupancy for the first six months of the year was fairly subdued when analysing Class performances. 

Overall, the Luxury class was the top performer, as ADR for the segment increased by 11.4% to USD235.74. 

June 2015 YTD, Occupancy, ADR & RevPAR percentage change in USD

Occupancy (%)

ADR (FX*)

RevPAR (FX)

ADR (CC**)

RevPAR (CC)

Americas

2.1

3.4

5.5

4.8

6.9

North America

2.2

4.0

6.3

4.9

7.1

Caribbean

3.2

4.3

7.6

5.7

9.1

Central America

1.5

0.3

1.8

0.4

2.0

South America

-3.3

-22.5

-25.0

1.7

-1.7

*FX = Foreign Exchange Rate, **CC = Constant Currency

When analysing the foreign exchange rate figures, hotels in South America suffered from a -22.5% decline in average daily rate (ADR) to USD116.42 for the first six months of the year, resulting in a -25.0% decrease in RevPAR to USD68.08. The hotel performance in June had a great influence on the results, as the 2014 World Cup held in Brazil weighed on the performance for the month. In addition, the on-going economic woes in Venezuela and Argentina, namely devaluation of the currency and high inflation, also affected the exchange rate for those countries. 

2015 Quarter 2 Snapshot: Americas Countries

Occ, ADR % Chg., June 2015 YTD, in local currency

  • Argentina recorded double-digit growth in ADR (+13.0% to ARS1,066.73) and RevPAR (+15.4% to ARS611.57). A high inflation rate has led to the increase in ADR, which has grown in year-over-year comparisons for 33 consecutive months. Buenos Aires mirrored this trend, recording a double-digit increase in RevPAR (+11.5% to ARS668.27) for the June year-to-date. This was driven by the increase in ADR (+9.2% to ARS1,150.32).
  • In June, Brazil reported decreases in the three key performance measurements: Occupancy (-6.8% to 57.3%), ADR (-36.3% to BRL276.53) and RevPAR (-40.6% to BRL158.49). Brazil’s performance reflects difficult-to-match comparisons from the same period in 2014, when the country hosted the FIFA World Cup. As a result, year-to-date results for Brazil shows a -14.2% decrease in RevPAR to BRL163.55.
  • Peru saw a 3.5% rise in Occupancy to 64.8% and double-digit increases for ADR (+11.4% to PEN450.19) and RevPAR (+15.3% to PEN291.53) for the June year-to-date. 

C&S America – Pipeline, Top 5

June 2015 Report, Pipeline by Room Count

Changes to markets

As part of our bi-annual market mapping exercise, we are going to review and revise the structure of some markets and submarkets with July 2015 processing. This includes the allocation of individual hotels to new / different markets and submarkets, where applicable. We do this to ensure minimum disruption to your data sets whilst providing the best industry data available as the sample grows and markets evolve. Several markets will reflect these changes with the July data release. Participants in those regions will be notified in a separate communication.

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