Hotels in Brazil are regaining ADR far quicker than Occupancy: STR

According to STR data from September 2021, the hotel sector in Brazil has outperformed its 2019 comparable in terms of average daily rate (ADR) for two of the previous three months.

The country’s ADR BRL was 327.21 in September, which was 6.4% higher than the pre-pandemic comparative from September 2019. (BRL307.56). Brazil likewise outperformed its 2019 comparative for July, with an ADR of BRL336.45.

“September is generally one of the worst ADR months in Brazil, but the country’s price comeback has been robust since early this year,” said Patricia Boo, STR’s Central & South America region director.

“Due to shift toward domestic leisure demand as well as a significant volume of closures in the lower-tier classes, hotels are regaining ADR far quicker than occupancy.”

The country’s occupancy rate of 49.4% in September 2021 was the highest of the pandemic era, however, it was still 18.9 % lower than in September 2019.

“Hoteliers have depended almost solely on domestic demand, resulting in a great performance in popular domestic holiday spots outside of large markets,” added Patricia Boo

“While local destinations could expect ongoing good performance in the medium term, ADR will likely decline over time when international outbound travel returns. Attracting overseas visitors will assist to compensate for any loss of domestic demand.”