Brazilian hotel RevPAR now stands higher than pre-pandemic levels as tourism surges forward in 2023. Occupancy has also risen in the country’s ten largest cities, with Brasilia the leading destination in terms of revenue. Analysts believe the second half of the year will see a stable market for hotels in Brazil and continued growth in daily rates.
Brazilian hotel RevPAR up over a third
The latest report from Hotelinvest shows positive growth for hotels in Brazil during the first six months of this year. Figures for all three metrics – occupancy, average daily rate and RevPAR – rose between January and July compared to the same period in 2022.
Occupancy rose in the ten largest cities by 4.9% compared to the first half of 2022. The latest increase takes occupancy levels to those last seen in 2019, prior to the pandemic.
The average daily rate has continued to rise as well. At the end of July, it stood at R$397, 28.5% more than in 2022 and ahead of 2019. RevPAR increased in tandem to reach R$397. This latest uptick translates to a leap of 34.9% in the year.
Brazil ahead of global hotel RevPAR growth
The latest figures show Brazil is slightly ahead of the general global tendency. In September, JLL reported that global revenue per available room rose by 10.5% in the first six months of this year.
As a result, JLL forecasts higher profitability for hotels this year, particularly in EMEA and the Americans. The consultancy company points to “muted supply growth” as one of the factors behind the increase.
Q2 figures also strong in Brazil
The Hotelinvest report points out that although hotel occupancy levels fell slightly in Q2 this year, financial metrics grew. Average daily rates for establishments went up to R$394, a 22.3% increase on Q2 in 2022.
As a result, Brazilian hotel RevPAR also increased and, by the end of July, stood at R$244. The figure is 19.3% higher than 12 months earlier.
Hotelinvest attributes the latest increases to several causes. They include the market’s recovery after the pandemic, particularly as foreign tourists have returned en masse to Brazil this year. In August, the country registered record rates of tourism. The resurgence of corporate and event travel has also contributed to the rise in average daily rates and RevPAR this year.
Brasilia stand-out city
The capital registered the best results for hotels in Brazil in Q2. Brasilia saw an increase of 28.5% in RevPAR, driven by a 26.3% uptick in average daily rates and a slight rise in occupation (up 1.7%).
Brasilia also showed the strongest market in the first half of the year, along with Brazil’s financial capital, Sao Paulo. RevPAR in the two cities grew by 44.4% and 43.9%, respectively, between January and July, principally because of the recovery of corporate tourism.
Solid second half of the year
Analysts expect further growth in Brazilian hotel RevPAR during the second half of 2023. They predict stable occupation levels and a moderate increase in average daily rates in the ten cities.
Leisure travel looks set to register continued growth as demand from international visitors grows. On the other hand, corporate travel could suffer a slight contraction, according to the Hotelinvest report.
(Source: Hotelinvest)
