COVID-19 webinar summary: 5 key points on Latin America (7 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 the key points below.
Buenos Aires had been off to a good start
Buenos Aires posted 52% RevPAR growth during the two first months of 2020, followed by Rio de Janeiro (+37%) and Montevideo (+32%). At the beginning of the year, Lima posted one of the steepest RevPAR declines in the region (-10 %) due to the political situation that developed in 2019.
South America: demand growth slows down
During the two first months of 2020, South America as a whole saw 8.8% RevPAR growth. Supply growth for the two first month of the year has been at its lowest level since 2012.
All Latin America countries affected by COVID-19
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.
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% (26 March). Likewise, occupancy in Bogotá decreased to 91.2% that same day.
Midscale and Economy Classes: 100% occupancy decline
Midscale and Economy Class hotels in South America saw a 100% occupancy decline for the week ending 29 March when compared with the same week last year. Luxury class hotels saw the week’s worst occupancy decline (-100%).