Restrictions push Lima’s hotel occupancy down after reaching 6-month high

4 mins read

BOGOTA – Recent COVID-19 restrictions pushed Lima’s hotel occupancy down after the market had reached a six-month high in April, according to data from STR.

After not reaching the 60% level since 30 October 2020, Lima’s occupancy eclipsed that mark on five separate days in April, including a high of 64.0% on the 12th. Most recently, the market has been below 50% since 23 April and dropped to a low of 25.7% on 16 May.

“Strong domestic demand lifted the market from its occupancy low points, even pushing beyond 2019 levels for a few days in mid-April,” said Patricia Boo, STR’s area director for Central/South America. “However, a surge in COVID cases and the ensuing emergency self-quarantine and movement restrictions implemented by the Peruvian government pushed occupancy back to the levels we saw during the first quarter of the year. The rise we saw last month is an encouraging sign for when the pandemic situation in the country is improved, but the market obviously has a long road to recovery ahead.”

Lima’s 47.4% occupancy level for April was well below the long-term average in the market, which included marks of 60.8% in in April 2019 and 74.9% in April 2018. Average daily rate (ADR) is even further behind in the recovery timeline, coming in at PEN47.29 in April 2021 after levels of PEN126.23 in 2019 and PEN157.62 in 2018. This is due to the strong discounts hoteliers had to make with group contracts for mining and other industries.

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