JLL survey shows 2017 hotel occupancy rate growth in Brazil, revenue fell
SÃO PAULO, August 28, 2018 - The Brazilian hotel industry recorded a slight recovery in average occupancy rate in 2017, reaching 56.5 percent versus 55.2 percent in 2016. The average daily rate (ADR) decreased by 6.7 percent in 2017 compared to the previous year. Meanwhile, the revenue per available room (RevPAR) fell for the third consecutive year, decreasing of 4.4 percent in 2017 compared to 2016.
The data is part of the "Lodging Industry in Numbers" survey conducted by JLL's Hotels & Hospitality Group, in partnership with the Forum of Hotel Operators of Brazil (FOHB) and the Brazilian Association of Resorts (ABR). The study's findings are based on questionnaires completed by more than 490 hotels, resorts and flats about their 2017 performance.
"The business segment accounted for almost 75 percent of the demand for rooms, with occupancy concentrated in urban hotels," explained Ricardo Mader, JLL Hotels & Hospitality director, South America. "It is worth noting that negotiated corporate rates constrained ADR growth in 2017, and prevented occupancy gains from producing positive aggregate RevPAR growth in 2017."
"The expectation is that the hotel industry is in recovery mode, with occupancy and RevPAR both expected to increase 2018. This expectation is bolstered by continued performance gains initiated in 2017 in key markets such as São Paulo, Curitiba, Fortalez and Salvador," Mader added.
According to the survey, strong performance in these markets was not enough to overcome the continued struggles in markets that had experienced the greatest supply growth between 2014 and 2016, such as Rio de Janeiro, Belo Horizonte and Manaus. This led to the continued decrease in occupancy rate, as well as a more pronounced reduction in the country's overall RevPAR in 2017.JLL's Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years globally, totaling more than $77.5 billion worldwide. Between negotiating property deals, the group's 350-person global team also closed more than 5,300 advisory, valuation and asset management assignments. To find out more visit: www.jll.com/hospitality.