SYgle>Industry Information>The Hotel Industry in the Central/South America Region Reports Postive Results for July 2017

The Hotel Industry in the Central/South America Region Reports Postive Results for July 2017

Column: industry Tag: hotel industry,Central and South America,performance Published: 2017-08-25 14:00 Source: Author:

Hotels in the Central/South America region reported positive results in the three key performance metrics during July 2017, according to data from STR.

U.S. dollar constant currency, July 2017 vs. July 2016

Central/South America

·Occupancy: +3.2% to 58.1%

·Average daily rate (ADR): +0.2% to US$97.86?

·Revenue per available room (RevPAR): +3.5% to US$56.83

·Local currency, July 2017 vs. July 2016

Argentina

·Occupancy: +8.6% to 62.3%

·ADR: +25.6% to ARS1,964.17

·RevPAR: +36.5% to ARS1,222.96

This marked Argentina’s highest actual occupancy level for the month of July since 2011. According to STR analysts, an increase in flight options to the country and South America as a whole should continue to help the market’s hotels. Buenos Aires recorded a 14.2% lift in demand for July, its third consecutive month of double-digit demand growth.

Chile

·Occupancy: +4.1% to 72.5%

·ADR: +1.0% to CLP76,710.70

·RevPAR: +5.1% to CLP55,599.85

Chile’s performance was driven primarily by weekend business, with occupancy up 5.7% compared with a 2.9% increase for weekdays, indicating uplift in leisure bookings. Through the first seven months of the year, the country’s ADR was down 5.7%, in line with a weakened economy due to a drop in the global price of copper. STR analysts note that Chile’s economy is expected to gain momentum in the second half of 2017, with a recovery in mining investment. The country currently has 22 hotel projects in the pipeline, accounting for 3,325 rooms.

Colombia

·Occupancy: +2.9% to 56.5%

·ADR: +2.0% to COP257,456.14

·RevPAR: +5.0% to COP145,558.86

July marks Colombia’s second month of RevPAR growth in 2017, including a 9.1% increase in May. The market has experienced a last-minute influx in supply development as the government’s tax break window for hotels built between 2003 and 2017 draws to a close. STR analysts note that the country’s June peace settlement with the Farc rebels could help stimulate hotel demand in the long term.

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