January kicked off 2025 with most countries in the Americas region (excluding the U.S.) reporting year-over-year (YoY) growth in revenue per available room (RevPAR). Argentina and Mexico led with the highest growth in RevPAR, disguised by currency issues that yielded a strong enough lift in average daily rate (ADR) to counter an occupancy decline in both countries.

— Source: STR

Rio de Janeiro stood out amongst the top markets in this region as having the highest RevPAR growth (at 33.9%). This was driven by strong performance on both weekdays and weekends, mostly due to corporate travel recovering and strong leisure demand. Many music shows over the last year have had a positive impact on performance, from Madonna to Rock in Rio. Most recently, Shakira performed in the market, which drove occupancy to reach its highest daily level for 2025 thus far. With more to come, including Lady Gaga, continued strong performance is anticipated this year.

Mexico is having a year, posting a double-digit RevPAR increase across most markets. These are predominantly fueled by rate growth impacted by a weakened currency against the dollar. The Mexico Caribbean was the next market in line behind Rio de Janeiro, with almost 28% RevPAR growth, followed by Mexico City and Baja California. Mexico City should expect to see a nice lift in performance when Shakira comes to town in mid-March. Forward STAR data shows hotel bookings around 40% on the concert nights.

In Panama, groups have recently been one of the key drivers for strong performance. Group rate growth has outpaced transient ADR, contributing to an overall room rate lift of nearly 10% in January. Occupancy gains were also present, resulting in RevPAR growth at 18.7%.

In Canada, the ADR gain is also sustaining most RevPAR growth. Group demand contributed to the 3.1% RevPAR growth in Canada, by driving rate increases at a level that exceeded the national rate growth, which was 2.7%. Several Canadian markets, including Montreal and Vancouver posted RevPAR increases.

— Source: STR

Peru continues to show strong performance following the pandemic. It experienced one of the largest RevPAR increases (14.2%) in January due to increases in both occupancy and rate, with more coming from rate. This country has seen strong corporate demand and groups coming back, contributing to the growth across the country, but also specifically in markets like Lima, where RevPAR growth exceeded 11%.

The Dominican Republic posted a double-digit RevPAR increase in January as well, at 13%. Unlike several of the other top countries in this region, this was driven by an increase on both the occupancy and rate side. Occupancy growth at nearly 5% was the second highest occupancy gain based on countries in the Americas, just behind Panama (at 8.5%). Rates grew nearly 8% this month, helping lift RevPAR growth to double-digit levels.

In Colombia, slight occupancy growth paired with stronger rate growth lifted RevPAR up 8% YoY. Bogota contributed to this lift, with an increase in rate (7.4%) that exceeded the national average. However, markets like Cartagena, for example, are seeing weekend demand slow downs due to economic concerns. As a result, this market grew rate half a percentage point YoY.

— Source: STR

*Analysis by Audrey Kallman.

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.

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