Hotels in Central and South America reported occupancy rose 5.6% to 56.7% in May, but a 44.5% drop in ADR to $92.74 drove RevPAR down 41.4% to $52.56.
LONDON—Hotels in the Central/South America region reported mostly negative performance results during May 2019, according to data from STR.
U.S. dollar constant currency, May 2019 vs. May 2018
• Occupancy: +5.6% to 56.7%
• Average daily rate (ADR): -44.5% to US$92.74
• Revenue per available room (RevPAR): -41.4% to US$52.56
Local currency, May 2019 vs. May 2018
• Occupancy: -1.3% to 58.3%
• ADR: -5.1% to US$94.54
• RevPAR: -6.3% to US$55.11
Demand in the market was up 4.0% from last May, but a 5.4% rise in supply placed further pressure on occupancy and ADR levels, which have remained low in the market since the devastating earthquake of April 2016. May occupancy levels from 2012-15 were roughly 70% or higher each year. Since that point, May occupancy has not reached 60%.
San Jose, Costa Rica
• Occupancy: -2.8% to 64.8%
• ADR: +7.3% to CRC59,573.88
• RevPAR: +4.4% to CRC38,605.75
According to STR analysts, demand declines in four of five months this year could be due to traveler perceptions around safety and crime in the country. However, that slowdown is not expected to continue—Oxford Economics forecasts 10.0% growth in international arrivals for 2019.
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