Over-supply of Hotel Rooms Threatens Prices in Panama City

Prices are expected to fall due to the over-supply caused by the $1.2 billion worth of investments planned over the next three years.

Friday, August 27, 2010

In capital city's province, there are currently 13,000 hotel rooms with a further 4,100 planned by the end of 2011. Though well received, the new rooms concerns businesses in the sector given that occupancy rates in the first half of 2010 were only 66%.

Annete Cárdenas, marketing manager for Hotel Marriot Panama commented that occupancy rates will need to reach around 90% before the new supply not to affect current hotel owners.

More on this topic

Growing Hotel Market

October 2017

Hotel renovations and the opening of new establishments are planned next year in Guatemala, in a market where the occupancy rate is around 60%.

Despite the fact that the occupancy rate has not exceeded 60% in the last two years, growth of the hotel market in Guatemala continues, especially in the metropolitan area. In this location, the areas of greatest demand continue to be those near the road to El Salvador, Cayalá and the sector near La Reforma Avenue.

Hotel Price War Continues in Panama

March 2015

While occupancy rates and average prices continue to fall, the Panamanian hotel market is preparing to increase its supply by another 1,200 rooms at the end of the year.

The Panamanian Association of Hotels (Apatel) reports that in recent years there has been a 209% increase in the number of rooms available in the country, in contrast to demand which has only grown by 5% annually.

Tourist in-flow increases but Hotel Occupancy Falls

July 2014

In Panama the increase in room supply has caused a price war between hotels trying to attract travelers and increase the occupancy rate which on average is not more than 60%.

Hotel occupancy in the country has been declining since 2011, when it stood at 68.6% dropping to 59.3% within the sector this year, according to figures from the Tourism Authority of Panama (ATP).

Still Not Enough Tourists For So Many Hotels

August 2011

Hotel occupancy in Panama has dropped by two percentage points in the first months of the year, and it is estimated that by 2012 the occupancy rate will fall to 38%.

In the race for growth between the number of tourists arriving in Panama, and the supply of available beds, the latter is winning, and it is estimated that it wont be until 2016 that the current occupancy rates are achieved again.

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