STR Reports Brazil Hotel ADR Higher Than 2019 Levels

Brazil’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.

“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”.

STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.