Report

Argentina Hospitality Market Analysis

The Argentina Hospitality Market was valued at USD 7.90 billion in 2025 and estimated to grow from USD 8.30 billion in 2026 to reach USD 10.60 billion by 2031, at a CAGR of 5.02% during the forecast period (2026-2031).

Domestic tourism continues to surge because favorable exchange-rate differentials increase local purchasing power, while the 21% VAT refund for foreign guests strengthens the appeal of registered hotels over informal rentals. International chains are accelerating conversion-led expansion pipelines, signalling long-term confidence even as financing costs climb. Government demand-side programs, such as pre-Viaje, inject fresh liquidity that cushions operators from currency swings. Meanwhile, strong ecotourism momentum in Cuyo and a steady return of corporate events in Buenos Aires broaden revenue streams across accommodation classes. Digital transformation drives margin protection as hotels shift bookings away from OTAs toward direct channels, using data-driven personalization to offset commission outflows. Finally, property-tax incentives and infrastructure upgrades in secondary destinations are expected to expand the national room inventory, supporting balanced geographic growth.

Argentina Hospitality Market Trends and Insights



Rising Inbound Tourism on Peso Weakness

A wide exchange-rate gap has lowered real travel costs for foreign visitors, sparking price-led demand spikes whenever the peso depreciates sharply. International arrivals decreased during the temporary peso appreciation in late 2024, underscoring the currency's outsized influence on booking sentiment. Hotels have responded with agile revenue-management systems that adjust rates in near real time to protect margins. Simultaneously, the peso weakness boosts the relative value proposition of premium experiences raising average length of stay for long-haul travelers and pushing upscale occupancy higher. Airlines are adding seasonal capacity on U.S. and European routes to meet demand, indirectly sustaining bed-night growth in gateway cities. The dynamic also stimulates domestic travel as Argentines redirect spending toward in-country destinations to avoid currency losses abroad. Together, these factors create a demand floor that insulates the Argentina hospitality market from regional economic shocks.

Government "Pre-Viaje" Travel-Credit Program

The Pre-Viaje scheme reimburses up to 70% of eligible domestic travel outlays through prepaid cards, generating pesos 50.7 billion in tourism activity during the most recent round. Participating hotels have seen occupancy lift by double-digit points during program windows as families advance-purchase stays to maximize credits. Because reimbursements must be redeemed within Argentina, leakage to outbound travel is minimized, keeping multiplier effects in the local economy. Operators in Patagonia and Cuyo report that prepaid cards are commonly used for ancillary services-helping raise total guest spend beyond room revenue. The initiative also improves cash-flow visibility for hoteliers by locking in bookings months ahead of peak seasons. Although funding needs annual Congressional renewal, strong uptake indicates the program will likely remain a short-term stabilizer for the Argentina hospitality market.

Chronic Macro-Economic Volatility & Inflation

Consumer prices expanded near 300% in 2024, upending revenue management as hotels faced daily cost recalibration. Capital controls complicate debt servicing for properties financed in foreign currency, while import restrictions delay essential equipment upgrades. Rapid wage adjustments to keep pace with inflation elevate payroll expenses, eroding EBITDA margins even as nominal ADR rises. Currency appreciation cycles reduce inbound visitor bargain appeal, leading to uneven occupancy patterns that strain cash flow forecasting. Tour operators redirecting packages to Brazil and Chile underscore Argentina's vulnerability to policy credibility. Together these forces impose a structural drag on the Argentina hospitality market, requiring sophisticated hedging and agile procurement strategies.

Other drivers and restraints analyzed in the detailed report include:

Expansion Pipelines of Global Hotel ChainsEcotourism-Led Lodge Demand in CuyoShort-Term-Rental Oversupply in Core Cities

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Chain-affiliated hotels accounted for around 30.15% of 2025 revenue, but their 7.85% CAGR projection through 2031 significantly outpaces independents. Conversions dominate pipeline strategy as operators leverage brand equity, loyalty networks, and global distribution to lift occupancy premiums. Marriott's City Express launch in Iguazu exemplifies the pursuit of high-traffic gateways, while Accor's multi-brand approach addresses diverse price points. The Argentina hospitality market size for chain hotels is expected to widen as performance guarantees attract domestic real-estate investors seeking dollar-linked income streams. Independents still control flagship properties in heritage districts where local ownership resists rebranding, preserving cultural differentiation that draws niche demand. However, access to advanced revenue-management tools remains a gap, prompting smaller groups to seek soft-brand affiliations. Over the outlook period, heightened chain penetration is set to lift overall service standards, pressuring underinvested independents to modernize or exit.

Independent operators remain indispensable outside major corridors, accounting for 69.85% of beds and serving markets where scale economics deter multinationals. Family ownership models grant flexibility in rate negotiation and experiential customization, fostering strong repeat patronage among domestic travelers. Some independents adopt asset-light leasing to professional managers, improving operational metrics without surrendering brand identity. Cooperative marketing alliances at provincial level are becoming more common, pooling budgets to access metasearch channels. Import substitution initiatives favor local procurement, enabling independent hotels to hedge currency exposure. Nevertheless, rising payroll and energy costs could squeeze margins if inflation outpaces achievable ADR. Sustained duality between chains and independents will continue to define the Argentina hospitality market, but competitive tension is likely to intensify.

The Argentina Hospitality Market Report is Segmented by Type (Chain Hotels, Independent Hotels), Accommodation Class (Luxury, Mid & Upper-Mid-Scale, Budget & Economy, Service Apartments), Booking Channel (Direct Digital, Otas, Corporate/MICE, Wholesale & Traditional Agents), and Geography (Buenos Aires, Central, Cuyo, Patagonia, Litoral, North Regions). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

Accor S.A. Marriott International Inc. Hilton Worldwide Holdings Inc. Wyndham Hotels & Resorts Inc. NH Hotel Group (Minor) Hyatt Hotels Corporation InterContinental Hotels Group PLC Radisson Hotel Group Selina Hospitality PLC Hoteles Libertador S.A. Hotusa Group (Eurostars) Argenway (Dazzler / Esplendor) Loi Suites Hotels Albamonte Group (Howard Johnson Dev.) Grupo Alvarez Arguelles Hoteles Aadesa Hotel Management Amerian Hotels Faena Group Alvear Palace Hotel Group

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support