Positive Momentum in South America
According to recent data from STR, hotel performance in South America has shown consistent and impressive gains, particularly in countries like Brazil, Peru, and Chile. These markets have seen monthly increases in Revenue Per Available Room (RevPAR), driven by a combination of higher average daily rates (ADR) and stronger occupancy levels. Brazil has stood out thanks to a resurgence in both tourism and business travel, with capital cities playing a central role in this upward trend. In Argentina, ADR has seen substantial growth, although largely shaped by local economic conditions such as inflation and fluctuating exchange rates, which are both challenges and opportunities for hoteliers.
Central America and the Caribbean: A Mixed Picture
In Central America, Panama enjoyed strong hotel performance early in the year, particularly in January and February, though momentum slowed in the following months. Costa Rica experienced growth in ADR but faced declining occupancy rates. Meanwhile, the Caribbean posted strong results, especially in destinations like the Dominican Republic and Puerto Rico, with notable RevPAR growth during the first part of the year.
North America’s Varied Outcomes
In North America, Mexico emerged as a top-performing market, following closely behind Brazil and Argentina in RevPAR gains. Canada also posted solid year-to-date performance, highlighted by its best RevPAR growth in May. The United States experienced a modest overall increase in hotel performance, thanks largely to a strong first quarter driven by singular events like the presidential inauguration and the wildfires in Los Angeles. However, growth leveled out from March through May.
Concerts Fuel Demand
A major contributor to the region’s hotel demand has been the influx of large-scale concerts. Between February and May 2025, notable tours like Shakira’s “Las Mujeres Ya No Lloran World Tour” brought millions of fans to cities across the Americas, significantly boosting hotel occupancy. Additional events such as the “System of a Down – Wake Up! South America Tour” and Lady Gaga’s record-breaking free concert at Copacabana Beach in Rio de Janeiro, which drew over 2 million attendees, further amplified hotel performance in key destinations.
Outlook for the Remainder of 2025
Looking forward, the outlook for the hotel industry in the Americas remains positive, particularly in Central and South America. As the summer season continues, the momentum from high-profile events and concerts is expected to sustain strong hotel performance. Moreover, economic factors may steer travelers toward more budget-friendly options in these regions, compared to costlier destinations in the U.S. or Europe. This affordability advantage could support continued demand growth and solidify the region’s position as a vibrant and resilient hospitality market.
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