Americas hotel performance update – May 2025

Strong start to 2025, especially in South America

Each of the largest countries in the Americas region posted revenue per available room (RevPAR) growth during the May 2025 year-to-date (YTD) period. Three South American countries (Brazil, Peru and Chile) ranked at the top, reporting RevPAR gains during each month of 2025 thus far. The metric’s performance was lifted by both average daily rate (ADR) and occupancy. Brazil has experienced strong leisure and corporate demand, while each of the aforementioned countries saw solid growth in their respective capital cities.

Argentina posted double-digit ADR gains which were significantly impacted by  exchange rates and inflation in the country. Colombia and other countries more dependent on U.S. business experienced a slowdown impacted by changes with the new U.S. administration. The global political climate is shifting demand in some countries more than others and creating opportunities in some areas with increased inter-regional travel.

In Central America, Panama experienced a solid start with strong gains in January and February before tapering off. Costa Rica performance was more muted with strong ADR gains offset by occupancy declines. In the Caribbean, two of the larger countries, Dominican Republic and Puerto Rico, both reported their greatest RevPAR advances in the first two months of the year. 

Gains in Mexico and Canada; slowdown in the U.S.

Mexico was the star performer in North America with RevPAR gains just behind the two top countries, Argentina and Brazil. Canada posted respectable May YTD performance, with May producing the greatest RevPAR gain of the year thus far. Performance in the U.S. was up slightly due to a strong first quarter impacted by one-time events (U.S. presidential inauguration and the Los Angeles wildfires). March through May were relatively flat.   

Concerts were the main performance drivers in South America

From February through May 2025 there were a notable number of large concerts across South America, which impacted performance. These concerts took place in practically every major country in the Americas. The most notable tour was Shakira's Las Mujeres Ya No Lloran World Tour which took place from February to May. Her tour landed in nine of the 12 Americas countries. 

Shakira - Las Mujeres Ya No Lloran World Tour

• February – Brazil, Peru, and Columbia 
• March – Chile, Argentina, and Mexico 
• April – The Dominican Republic 
• May – Canada and the U.S. 

System of a Down - Wake Up! South America Tour

• April – Columbia, Peru and Chile
• May – Argentina and Brazil

Lada Gaga - free concert 

• May – Copacabana Beach in Rio de Janeiro, Brazil 
• Broke attendance records with an estimated 2.1 to 2.5 million fans.

Looking ahead

With summer in full swing and strong performance due to concerts already experienced, it’s reasonable to expect stadium concerts and other large events will continue to lift hotel performance. For countries in Central and South America in particular, the better value offering compared to U.S. and major tourism countries in Europe bodes well for this region as economic challenges move travelers to be more cost conscience.