Argentinian high end hotel pipeline slows as tourism strengthens
Pictured: rendering of W Buenos Aires.
The direction of Argentina’s premium hotel pipeline looks to be in stark contrast to a recent rebound in international visitors.
With the South American nation lifting all covid restrictions for global travellers in recent months, tourism is almost back to pre-pandemic levels.
Argentina’s Ministry of Tourism and Sports recently reported that 5.6 million visitors from abroad entered the country between 1 January and 31 October 2022. Of that number, 3 million were tourists.
The trajectory is upwards, with October itself representing the highest influx, totalling 410,000 tourists – 76% of the amount during the same month in 2019.
According to TOPHOTELPROJECTS statistics however, the country’s high end hotel pipeline has been gradually shrinking over the past couple of years. Our latest data shows that at least 34 high end hotels comprising 3,993 keys are currently in the offing.
Last year this was 42 hotel projects numbering 4,174 rooms and in 2020 the figures totalled 49 sites and 5,038 keys. In hotel site percentage terms, this represents a reduction of firstly 17% and then 24% year on year between 2020 and now, with room total percentages cut by 21% and 5%, respectively.
Hotel chains may therefore want to up their Argentinian development rates if the country’s tourism industry continues to expand. Brands already leading the charge are Hilton Worldwide’s Hilton Garden Inn and Hampton by Hilton, with four and three sites on the slate, respectively.
Lifestyle brand Selina, Marriott International’s Sheraton Hotels & Resorts and Accor’s Mercure Hotels make the high end hotel podium too, with two sites each.
In terms of high end hotspots, capital city Buenos Aires heads the list with nine developments, with the country’s third most populous city, Rosario, coming in as runner up with three sites.
Sharing third place, with two hotels each, are Ushuaia, Bariloche and Cordoba.
Segments and deliveries
Premium segment composition shows a slight lean towards upscale four star sites, with 20 properties, equivalent to 59% of the total. The remaining 14 hotels/41% are luxury five star constructions.
2023 is currently the pipeline peak, with 13 hotels – 38% of the whole – due for delivery next year. 2024 will see another nine openings, (26% of the total) and 2025 will welcome a further five. Just one more site is due to complete by the end of this year, while the remaining six records in our database are yet to be scheduled.
Projects to watch out for in Argentina include W Buenos Aires, a 150 key hotel and residences which will be located within a $100 million, 34-storey, mixed-use tower. Amenities include a mix of meeting spaces, restaurants and a rooftop bar, with project delivery scheduled for 2024.
Plus, the 110-room Hampton by Hilton Rosario will appear in the heart of Rosario’s downtown in Q1 2024. The eight storey hotel will form part of a mixed use complex and will feature the brand’s amenities including a 24-hour business centre and fitness centre, while each guestroom will include an HDTV and coffeemaker.
Many TOPHOTELNEWS articles draw on exclusive information from the TOPHOTELPROJECTS construction database. This subscription-based product includes details of thousands of hotel projects around the world, along with the key decision-makers behind them. Please note, our data may differ from records held by other organisations. Generally, the database focuses on four- and five-star schemes of significant scale; tracks projects in either the vision, pre-planning, planning, under-construction, pre-opening or newly opened phase; and covers newbuilds, extensions, refurbishments and conversions.
According to the THP database, the select service brand has at least 49 upscale hotel additions on the slate, totalling 8,473 keys. Extra quarter As at 30 September 2022, the strand had 218 sites encompassing 33,940 keys in operation across 33 countries. Therefore its...
Nearly one in four pipeline properties is classified as a lifestyle hotel, representing 10% of the existing base of hotels, further strengthening Hyatt’s position in the luxury, lifestyle and leisure segments. Dream driver A notable driver of this growth is the...
With momentum from Q4 2021 continuing into 2022, UK hotel investment saw a robust first half of the year, accounting for 68% (£2.1 billion) of total annual investment, the firm reported. Market hindrances However, the volatility that arose from the war in Ukraine,...
Increasing demand from travellers could also in turn prompt hotel developers and chains to look again at the southeast Asian nation and boost their pipelines. Chinese deal The Implementation Program on Tourism Cooperation, signed this month with the Ministry of...
With recent announcements of Bangkok and Abu Dhabi, the 32nd property to join the portfolio, the brand continues to grow globally with a strong development pipeline. Decade milestone This year marks Nobu Hotels’ 10th anniversary following the opening of Nobu Hotel...
The firm will welcome two flagship openings in the second half of this year, in Singapore and Shanghai, while the Artyzen Habitat brand will add another four Chinese hotels. Robust growth The upcoming additions mean AHG will reach a total of 19 operating properties...