Rio Hotels Have Highest Daily Rates in Brazil

By Nelson Belen, Contributing Reporter

RIO DE JANEIRO, BRAZIL – A just-released study of the Brazilian hotel industry shows that by year’s end São Paulo hotels project to have one of the highest occupancy rates in Brazil at 61.75 percent, while Rio de Janeiro hotels are on pace to have the most expensive daily rates in Brazil at R$338.28.

The results were published in the 2017 Nogales Report released by the hotel consulting group, The Nogales Group. The report analyzed hotel metrics in fifteen Brazilian cities so far for 2017 and also used the data to predict the last half of 2017 and several years ahead, until 2022.

Along with Rio de Janeiro and São Paulo, the Nogales Report analyzed occupancy rates and daily rates for hotels in Belo Horizonte, Vitória, Campinas, Salvador, Recife, Fortaleza, Brasília, Goiânia, Curitiba, Porto Alegre, Florianópolis, Manaus, and Belém.

According to the study, despite a recent crime outbreak that has required military intervention, Rio de Janeiro hotels are on pace to finish 2017 with the most expensive rates in Brazil with an average daily rate of R$338.28.

A closer look at the report shows that the Cidade Maravilhosa started the year strong with rates averaging R$317.82 in January before reaching a high of R$370.20 in February during Carnival. Despite the projection that Rio will finish the year with the country’s highest daily rate, the reports’ most recent actual figures show rates in Rio reached a low of R$259.14 in June.

Surprisingly, the city that is expected to have the lowest rates for the year is Belo Horizonte, with an average daily rate of R$155.68.

São Paulo is projected to have one of the highest hotel occupancy rates in Brazil for 2017 at 61.75 percent. Hotels in São Paulo got off to a slow start in 2017, with an occupancy rate of 45.81 percent in January.

As the year progressed, the figure rose steadily to a high of 68.03 percent in May, before dropping slightly to 65.19 percent in June.

And despite boasting the most expensive rates in the country, Rio’s hotel occupancy rate dipped below fifty percent in June, dropping to 45.05 percent. Rio started the year with an occupancy rate of 52.19 percent in January and is expected to finish 2017 with an average occupancy rate of 47.93 percent for the twelve-month period.

The city expected to have the highest occupancy rate in Brazil for 2017 is Florianópolis, projected to have an occupancy rate of 66.02 percent. At the other end of the spectrum, the city with the lowest occupancy rate in Brazil is projected to be Manaus at 45.26 percent.

The wide-ranging 2017 Nogales Report not only relied on data provided by the hotels, it also compiled information and research from various governmental and non-governmental organizations including Brazil’s Ministry of Tourism, the Central Bank of Brazil, and the World Tourism Organization (UNTWO).

Various hotel and travel organizations also contributed to the study, such as the Brazilian Hotel Operators Forum (FOHB) and the Brazilian Hotel Industry Association (ABIH).