JULY 13, 2025 – SOUTH AMERICA – South America has emerged as the standout performer in the global hotel industry in 2025, with Brazil, Peru, and Chile at the forefront of a regional hospitality surge. According to the latest data from STR, the region recorded significant gains in Revenue per Available Room (RevPAR), Average Daily Rate (ADR), and occupancy, outpacing other global markets and signaling a powerful rebound in both leisure and business travel.
This revitalized performance comes after years of pandemic-related downturns, and industry analysts are optimistic that these trends may mark a sustainable turning point for South America’s tourism and hospitality sectors.
Brazil Sets the Pace with Strong Domestic and International Demand
Brazil has led South America’s hospitality recovery in 2025 with notable growth across key cities such as Rio de Janeiro, São Paulo, and Brasília. The country’s hotel performance has been fueled by a combination of corporate travel resurgence, international tourism, and major cultural events.
The easing of travel restrictions, coupled with the return of international air connectivity, has boosted Brazil’s inbound travel, prompting a surge in both room demand and room rates. Event-driven tourism, including massive music concerts and international festivals, has been a particular highlight.
A standout moment was Lady Gaga’s record-breaking free concert at Copacabana Beach, which attracted an estimated 2.1 to 2.5 million people, filling hotels across Rio and spilling over into nearby towns. According to Brazil’s Ministry of Tourism, hotel occupancy in the city hit 92% during that weekend, a peak not seen since Carnival pre-pandemic.
Peru and Chile Showcase Resilience and Long-Term Growth
While Brazil set the tone, Peru and Chile have proven equally pivotal in lifting South America’s overall hotel metrics. Lima, Peru’s bustling capital, has enjoyed steady ADR increases, supported by a growing mix of corporate events, cultural tourism, and improvements in tourism infrastructure.
Chile’s capital, Santiago, is seeing similar gains. With its reputation as a gateway to Patagonia and the Andes, and growing appeal among eco-tourists and adventure travellers, Chile has successfully positioned itself as a high-value destination. The rise in sustainable tourism has attracted an affluent, longer-staying demographic, boosting both occupancy and RevPAR.
According to Chile’s National Tourism Service (SERNATUR), international arrivals increased by 16% in Q2 2025, with average hotel stay duration increasing from 2.8 to 3.6 nights.
Argentina’s Hotel Industry Grows Despite Economic Headwinds
While Argentina continues to grapple with economic volatility—including currency devaluation and high inflation—its hotel sector is showing surprising resilience. Buenos Aires, Mendoza, and Patagonia remain highly attractive to international visitors drawn by Argentina’s rich culture, gastronomy, and natural wonders.
Luxury and upscale hotels in these areas have reported double-digit ADR growth, as foreign visitors take advantage of the favourable exchange rate. However, fluctuating pricing and inflation have made rate management challenging for local hoteliers.
Despite these hurdles, Argentina has remained a top-three performer in South America for 2025 RevPAR growth, according to STR’s midyear performance report.
Central America and the Caribbean Show Mixed Hotel Performance
Beyond South America, Central America and the Caribbean presented a more mixed picture. Panama, an early 2025 success story, experienced a deceleration in hotel demand mid-year. Nonetheless, the country continues to benefit from its role as a business hub and conference destination.
Costa Rica showed strong ADR results driven by luxury eco-lodges and sustainable travel, although occupancy dropped slightly outside peak seasons. In the Caribbean, Puerto Rico and the Dominican Republic posted standout hotel performance, especially in Q1 2025, driven by beach tourism and high-profile cultural events.
Major Events Fuel South America’s Hospitality Boom
Large-scale events have significantly contributed to South America’s RevPAR surge. The Shakira “Las Mujeres Ya No Lloran World Tour” visited nine Latin American countries, generating spikes in hotel demand and injecting millions into local economies.
Other crowd-pulling acts like System of a Down’s “Wake Up! South America Tour” further stimulated travel to secondary cities, highlighting the role of concerts and festivals in extending tourism beyond capital cities.
These events have not only increased hotel occupancy but also supported local restaurants, transport services, and retailers—reinforcing the economic multiplier effect of tourism and entertainment.
North America and Mexico: Competitive but Not Leading
While South America soared, North America’s hotel performance in 2025 remained stable but less impressive. Mexico was among the better performers, following Brazil and Argentina in RevPAR gains, boosted by both coastal resort travel and Mexico City’s strong business tourism.
Canada maintained steady occupancy levels, especially in Vancouver and Toronto, though without major gains. The United States saw modest growth, bolstered early by events like the presidential inauguration, but performance flattened in the spring.
South America’s Hospitality Future Looks Promising
As 2025 continues, South America is asserting itself as a global hospitality leader, driven by dynamic demand patterns, successful tourism strategies, and the revival of business and event travel. Brazil, Peru, and Chile are not just recovering—they are thriving, setting benchmarks for the rest of the Americas.
The combination of cultural richness, diverse landscapes, event-driven tourism, and smart investment in infrastructure has positioned the region for long-term hotel sector growth. While some economic uncertainties remain, particularly in Argentina, the overall trajectory for South America’s hotel industry is upward.
According to STR’s forecast, if current trends continue, South America could record its highest regional hotel performance on record by Q4 2025—making it one of the most compelling hospitality growth stories of the decade.
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