Why Latin America is an Underrated Hospitality Market [Download construction report]
Investors are considering putting their money into hospitality project in Latin and South America
Experts and information from the TOPHOTELCONSTRUCTION database paint a picture of a rising market that is not without a few ongoing challenges for investors
Latin America is a consistently underrated hospitality market, one where in recent years hoteliers have come to identify a host of opportunities as well as occasional hurdles that still remain in their way when it comes to developing new properties in the region.
Investors who are considering putting their money into hospitality project in Latin and South America would do well to verse themselves in both, of course, experts have said. Indeed, information from the TOPHOTELCONSTRUCTION database certainly paints the picture of an up and coming hospitality region that is on the cusp of having its big moment in the sun.
In fact, according to numbers from the TOPHOTELCONSTRUCTION database, there are currently 314 projects in Latin America’s project pipeline, which once they have been completed will yield a total of roughly 72,065 rooms. The database also seems to indicate that growth will happen sooner, rather than later, with a massive 48 percent of Latin America’s upcoming projects being scheduled to come to completion within this calendar year, yielding as many as 32,186 rooms for the region during 2018. Currently, the database also shows that 46 percent of the overall number of projects are presently under construction.
With that in mind, let’s take a look at prospects for some of the individual countries within Latin America.
Chile’s economy is small relative to the dominant powers in the region such as Argentina and Brazil, but it the country has continually drawn praise as a safe and stable haven for investment dollars. There is a new presidency underway in Chile, but experts have said they do not expect any major changes to the ongoing stability of the country.
Chile’s hospitality market is thriving in part due to the nature of the diverse experiences that guests can find there, from the metropolitan hub in Santiago to the hiking and other ecotourism available in the far south of the country within the world-famous region of Patagonia. Chile also has certain conditions that make parts of the country among the most viable in the world for astrotourist who want to look at the stars.
Argentina has long offered considerable upside and opportunities to investors, although as of late experts have said there is some growing concern surrounding the country, more than there has been in the recent past, anyway.
Experts have said there is a complicated environment for hotel projects in Argentina, but that the long-term prospects are still quite exciting for investors. This long-term rosiness is said to stem from the country’s large population and excellent infrastructure.
According to many experts, growth opportunities can easily be found within the secondary markets in Peru.
While there are a wealth of local investors in the country itself, experts also say that conditions in Peru are ripe at the moment for larger brands to grow their footprints there by asserting themselves.
At present, residential travelers in Peru are also a larger market than foreign inbound travelers tend to be.
Let’s take a look at a few other projects currently underway Latin America:
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