COVID-19 webinar summary: 5 key points on Latin America, 14 April
STR remains committed to keeping the hospitality industry updated on the impact of the COVID-19 pandemic, and our webinar series will provide in-depth updates on world regions around the globe. However, if you are unable to watch the full recording during this stressful time, you can find a summary of key points below.
Peru occupancy reflects government measures to combat the spread of COVID-19
Peru was one of the first countries in the region to implement measures to combat the spread of COVID-19. The country’s year-over-year occupancy declines eased slightly during the final week of March due to an influx of medical workers and first responders in the market.
Latin America: one month of occupancy declines
Hotel performance in all Latin America countries has been affected by COVID-19, especially those markets highly dependent on international demand. Likewise, decreases in occupancy are greater as virus containment measures have intensified throughout the region. However, Brazil showed high growth during the first week of March due to the rebound effect of Carnival celebrations.
Brazil: all hotel classes affected by COVID-19
All hotel classes in Brazil saw similar occupancy declines during March. Midscale and Economy Class hotels in Brazil posted a 41.5% decline when compared with the same week last year.
São Paulo, one of the cities most affected by COVID-19
São Paulo has been one of the markets most affected by COVID-19. The market presented decreases in occupancy as bad as 93% (9 April). Likewise, occupancy in Rio de Janeiro decreased 72% that same day.
ADR declines in Rio de Janeiro and São Paulo
The two main cities in Brazil, Rio de Janeiro and São Paulo, had been posting 10-15% ADR growth on average since the beginning of February. Rio de Janeiro rate increases spiked during 21-26 February due to Carnival 2020, but fell dramatically in the early days of March due to the rebound effect of 2019 Carnival celebration. ADR decreases have been more frequent in each of Brazil’s top two markets.