At the recent South American Hotel Investment Conference in Colombia, experts and other speakers painted an overarching picture of opportunities and optimism for the hospitality industry in South America, with brand execs from industry giants such as Marriott, Hyatt, IHG, Hilton and others sharing aggressive development strategies for the emerging region.
Hotel development and brand expansion in South America has long been a tale of individual countries, regions and cities rather than a collective story, and the discourse at this year’s SAHIC really emphasized and underscored that reality. On the first day of the two-day conference, speakers made this abundantly clear by emphasizing that hotel performance and pipeline trends across the region, and brand executives shared their focus areas, projecting overall optimism for South America, despite the differences in economic, financial and political stability across the region.
Latin America Report from TOPHOTELCONSTRUCTION
The expert information from those who attended the conference, however, is not the only available insight into the state of the hospitality. No, far from it.
In fact, the August LATAM Hotel Construction Report from TOPHOTELCONSTRUCTION also helps to provide an increasingly rosy picture of a South American market that provides new and dynamic growth opportunities for hospitality investors and hoteliers alike.
Here are some of the key findings from that report: There are currently 354 new hotel projects coming soon throughout Latin America, which is only 6 percent worldwide, but is actually realtively encouraging for the region. Latin America is now, for example, a bit ahead of Africa, which has not been the case as of late as many investors have started looking for opportunities there, in what is often described as an untapped and complicated market.
Another major finding in the TOPHOTELCONSTRUCTION report is that this has been a very busy year for the region and also that next year stands to be no different. It’s easy to say or read that, but there are actual numbers in the report that also help to bear it out and bring it into focus. In 2018, the pipeline features 113 new projects, which makes up a massive 32 percent share of the Latin American market. Then, in 2019, the region is expected to be home to another 100 projects, which adds up to a total 28 percent share. The two segments together add up to a whopping 60 percent. This is, of course, somewhat standard for pipelines, as many projects don’t get official opening dates until they get within 18 months or so of completion, for purely logistical reasons. Still, it would seem to bode well for both the present and near immediate future of the hotel industry in Latin America.
Finally, the other most noteworthy bit of information in the TOPHOTELCONSTRUCTION report is perhaps that 51 percent of the projects in the pipeline there are being categorized as luxury, which gives a window into the profitability of the market in the coming years and months.
Let’s take a look at a few other projects currently underway Latin America:
More information on hotel projects in the LATAM region can be found in the TOPHOTELPROJECTS database. TOPHOTELPROJECTS is the specialized service provider of cutting-edge information of the hospitality industry.