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Brazil hotel ADR higher than 2019 levels

Brazil hotel ADRBrazil’s hotel industry has surpassed its 2019 comparables in average daily rate (ADR) for two of the last three months, according to September 2021 data from STR

The country’s ADR reached BRL327.21 in September, which was 6.4% higher than the pre-pandemic comparable from September 2019 (BRL307.56). Brazil also beat its 2019 comparable during July with an ADR of BRL336.45.

“September is typically one of the weakest ADR months in Brazil, but the country’s rebound in pricing has been strong since the early months of this year,” said Patricia Boo, STR’s area director, Central & South America. “Hotels are recovering ADR much faster than occupancy due to a shift toward domestic leisure demand as well as a high volume of closures in the lower-tier classes.”

The country’s 49.4% occupancy level in September 2021 was its highest of the pandemic-era but still down 18.9% from September 2019.

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“Hoteliers have relied almost entirely on domestic demand, which has led to strong performance in popular domestic vacation destinations outside of the major markets,” Boo said. “While domestic destinations should anticipate continued strong performance in the short-term, it is likely that ADR will soften over time as international outbound travel resumes. Attracting international arrivals will help to offset the loss of domestic demand when that happens”.

Further analysis regarding Brazil hotels ADR and occupancy recovery can be found here

Tags: ADR, Average Daily Rate, Brazil


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