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Latin America Market Update Q3 2015 from STR Global

Spotlight Americas – Constant Currency 

RevPAR, September 2015 YTD, USD, Constant Currency

A focus on Latin America’s performance

Until September 2015 YTD, the total Americas region reported a +6.6% increase (USD Constant Currency***) in revenue per available room (RevPAR), achieving USD 81.13. The increase in hotel performance was driven mainly by ADR (+4.8%). Overall, South America was the only sub-continent to experience slight negative RevPAR growth for the period, which declined by -0.8% to USD68.27. This was the result of declined Occupancy by -3.8% 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- Sep 2015, USD, Constant Currency

 

C&S America Class Comparison

Sep 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. 

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

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

When analysing the foreign exchange rate figures, hotels in South America suffered from a   -24.0% decline in average daily rate (ADR) to USD116.69 in September YTD, resulting in a -26.9% decrease in RevPAR to USD68.27. 

The hotel performance in Brazil had an influence on YTD results, as the 2014 World Cup held weighed on the overall performance. In addition, the on-going economic woes in Brazil, Venezuela and Argentina, as well as devaluation of several currencies within Latin America and high inflation, also affected the exchange rate for those countries. 

2015 Quarter 3 Snapshot: Americas Countries

Occ, ADR % Change, September 2015 YTD, in Local Currency

Colombia saw occupancy (-0.7% to 61.3%) remain nearly flat in September. However, the country reported double-digit increases in ADR (+13.0% to COP262,231.00) and RevPAR (+12.2% to COP160,669.50). Rate drove RevPAR performance for the month, while occupancy was affected by supply growth (+9.1%) outpacing demand (+8.4%). RevPAR YTD grew by +8.1%

Costa Rica experienced a YTD increase in occupancy (+5.5% to 62.9%) and RevPAR (+6.1% to CRC47,439.80). ADR (+0.6% to CRC75,417.74) in the country went nearly unchanged. A 12.2% increase in demand in the country as well as a 79.2% increase in group occupancy was recorded for the month of September. 

Panama reported positive occupancy growth in the third quarter of the year, turning the YTD into a slight positive result of +0.8%. September was particular strong from an occupancy perspective, which grew +5.4% to 50.4%, however ADR decreased    (-6.6% to PAB95.91) and RevPAR (-1.5% to PAB48.38). Strong demand growth in September (+10.6%) boosted occupancy in the country, but a drop in rate led to the overall decrease in RevPAR. The 50.4% absolute occupancy level was the highest for a September in Panama since 2012.

Bogotá, Colombia, experienced a 2.1% decrease in occupancy to 60.2% in September. However, the market reported double-digit growth in ADR (+18.9% to COP299,331.48) and RevPAR (+16.4% to COP180,053.38). The capital of Colombia mirrored the nation’s performance for the month. 

Buenos Aires, Argentina, reported a decline in occupancy (-3.4% to 62.1%) for September, but increases in ADR (+10.0% to ARS1,178.70) and RevPAR (+6.2% to ARS732.55). ADR drove RevPAR performance for the month as a 3.1% drop in demand hurt occupancy. The depreciation of the currency and the recent elections are deemed to put further strains on the economy of Argentina as a whole.

São Paulo, Brazil, saw decreases in occupancy (-8.9% to 62.1%) and RevPAR (-4.1% to BRL215.04). ADR in the market was up 5.2% to BRL346.08. The absolute occupancy level in the market was the lowest for September since 2009. ADR increased due to inflation, which declined September YTD by -1.5%. 

C&S America – Pipeline, Top 5

September 2015 Report, Under Contract Pipeline by Room Count

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