Strong start to 2025, especially in South America
Each of the largest countries in the Americas region posted revenue per available room (RevPAR) growth during the May 2025 year-to-date (YTD) period. Three South American countries (Brazil, Peru and Chile) ranked at the top, reporting RevPAR gains during each month of 2025 thus far. The metric’s performance was lifted by both average daily rate (ADR) and occupancy. Brazil has experienced strong leisure and corporate demand, while each of the aforementioned countries saw solid growth in their respective capital cities.
Argentina posted double-digit ADR gains which were significantly impacted by exchange rates and inflation in the country. Colombia and other countries more dependent on U.S. business experienced a slowdown impacted by changes with the new U.S. administration. The global political climate is shifting demand in some countries more than others and creating opportunities in some areas with increased inter-regional travel.
In Central America, Panama experienced a solid start with strong gains in January and February before tapering off. Costa Rica performance was more muted with strong ADR gains offset by occupancy declines. In the Caribbean, two of the larger countries, Dominican Republic and Puerto Rico, both reported their greatest RevPAR advances in the first two months of the year.
Gains in Mexico and Canada; slowdown in the U.S.
Mexico was the star performer in North America with RevPAR gains just behind the two top countries, Argentina and Brazil. Canada posted respectable May YTD performance, with May producing the greatest RevPAR gain of the year thus far. Performance in the U.S. was up slightly due to a strong first quarter impacted by one-time events (U.S. presidential inauguration and the Los Angeles wildfires). March through May were relatively flat.
Concerts were the main performance drivers in South America
From February through May 2025 there were a notable number of large concerts across South America, which impacted performance. These concerts took place in practically every major country in the Americas. The most notable tour was Shakira’s Las Mujeres Ya No Lloran World Tour which took place from February to May. Her tour landed in nine of the 12 Americas countries.
Shakira – Las Mujeres Ya No Lloran World Tour
- February – Brazil, Peru, and Columbia
- March – Chile, Argentina, and Mexico
- April – The Dominican Republic
- May – Canada and the U.S.
System of a Down – Wake Up! South America Tour
- April – Columbia, Peru and Chile
- May – Argentina and Brazil
Lada Gaga – free concert
- May – Copacabana Beach in Rio de Janeiro, Brazil
- Broke attendance records with an estimated 2.1 to 2.5 million fans.
Looking ahead
With summer in full swing and strong performance due to concerts already experienced, it’s reasonable to expect stadium concerts and other large events will continue to lift hotel performance. For countries in Central and South America in particular, the better value offering compared to U.S. and major tourism countries in Europe bodes well for this region as economic challenges move travelers to be more cost conscience.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
