New hotel supply and social conflicts in Lima, Peru, muted pricing power for existing hotels last year.
But Andrés Rosero, general manager of The Westin Lima Hotel & Convention Center, said there is room for growth in the market in 2024.
The biggest challenge for Lima's hotel market in 2023 was navigating the political unrest and social conflicts at the start of the year, which further pushed back the recovery.
"We experienced a significant impact on demand and a high level of cancellations. Alongside the commercial team, we worked diligently to regain business and the trust of our clients," he said in an email interview. "Certainly [third and fourth quarters 2023] showed a favorable change, and we have seen international tourists come back to the destination and to the hotel."
According to CoStar data, 24 hotels have opened in Peru since 2019; 16 of those were in Lima.
Lima's hotel average daily rate in November 2023 was 361.20 soles ($97.55), which is a 1.9% increase over November 2022. November 2022 ADR, however, was 354.33 soles, a 54.7% increase over the same period in 2021.
Average daily rate in November 2019 was 423.42 soles, according to CoStar data.
Recovering from the depths of the COVID-19 pandemic in 2020 has taken time for Lima's hotels, but there were favorable changes across the market in the back half of 2023, Rosero said. Lima is both a leisure and corporate destination, though it primarily depends on the latter.
The segments that recovered first were leisure, then business transient, or individual business travelers, Rosero said.
"However, the groups and incentives segment is still in the process of recovering, and the gap is gradually narrowing. Many of our scheduled groups were postponed to 2024, so we anticipate a significant recovery in the coming months," he added.
Rosero said Lima is close to regaining its competitiveness against other markets. His goal in 2024 is for The Westin Lima to achieve daily rates at 2019 levels.
"It would be fantastic to even surpass it," he said.
Read below for more insights from Westin Lima Hotel & Convention Center General Manager Andrés Rosero.
What inspired you to enter the hospitality industry?
I liked cooking since I was a child. I remember watching many French chef programs on television, spending hours learning cooking techniques, wine reductions, the use of aromatic herbs, among other things. I was able to start doing internships in a hotel kitchen at the age of 15, and I loved it. Another important moment that I highlight is in 2007 when I transitioned from being a chef and working in a kitchen to being in an office, leading a food-and-beverage department, solidifying my passion for hotel management and team leadership.
What wins did your team at the Westin achieve in 2023?
[We achieved] significant corporate business recovery from [the second quarter] with a notable improvement in occupancy levels starting in July. We surpassed guest satisfaction and service quality levels. By the end of November, the hotel ranks No. 1 in the Americas among 148 Westin hotels. Employee satisfaction survey results for the second year in a row are above 90 points.
What is your main goal for your team and property in 2024? What are you most looking forward to?
[We are] striving to match pre-pandemic sales levels and the recovery of the groups and [meetings, incentives, conferences and exhibitions] segment; being a key player in the recovery of the hotel market in Lima; maintaining high levels of quality and satisfaction for our guests and clients; and working hand in hand with our associates and continuing to make a significant impact on the hotel's work environment.
Have you seen an increase in travelers from different feeder markets coming into Peru?
What we have seen is a recovery in the number of international travelers, with the United States being the main feeder market for our hotel. While we continue to have reservations from Peruvians, the share of the mix they now represent is lower and has returned to levels that are more regular. Latin American countries as well as Europe are already returning to regular levels, while we still anticipate a recovery of Asian markets by 2024.
What are some traveler trends you and your team are keeping an eye on in 2024?
Increasingly, business travelers are inquiring about private spaces within the hotel where they can stay and make calls, as well as communal areas for working, rather than confining their work to their rooms, while high-speed Wi-Fi is already a standard expectation for any hotel.
Our clients are also seeking local experiences and events. Consequently, our product offering now includes live music at various outlets, menu tastings, takeovers with chefs and bartenders and more. We are also focused on providing very fast response times for all of our clients as this has become increasingly important with reservations having a shorter booking window.
Peru is a country that eagerly awaits to welcome many business and leisure travelers in 2024.