According to a new study from Lodging Econometrics, Latin America's construction pipeline increased for the fifth quarter in a row, reaching 517 projects/83,939 rooms at the end of the first quarter of 2011. Year over year, totals have increased by 14% for ventures and 10% for spaces, reaching a two-year peak. All regional pipelines, with the exception of Mexico and the Caribbean, reached bottom in early 2010 and have been trending upward since then.
Over 43% of the total Latin American pipeline is currently under construction, with 219 projects totaling 36,131 rooms expected to open in 2011 and 2012. Early planning totals have risen to a new cyclical high of 160
projects/24,799 spaces, owing to an increase in new project announcements (NPAs) into the pipeline. Early preparation project totals now outnumber those achieved during the pipeline peak in Q1 2008 by 28%. buy house in qatar
Franchise company initiatives to expand brand presence in the rapidly growing area, especially in Brazil, have fueled much of this boom. Companies from all over the world are vying for a foothold in Brazil, owing to the global sporting events the country will host in the coming years, including the World Cup in 2014 and the Olympic Games in 2016. NPAs have been the for four quarters, fueled by these events and a booming economy, bringing Brazil's total pipeline to a new high of 177 projects/29,355 rooms, a level not seen since Q1 2009. Following the United States, China, and India, Brazil now has the world's fourth-largest total pipeline room count.
Developer interest is also increasing in other Latin American areas, resulting in an increase in pipeline counts. In Q1, the total pipeline for other South American countries combined grew 20% by projects and 14% by rooms, to 109 projects/15,455 rooms, thanks to increased growth in Colombia and Peru. Central America's total pipeline increased to 51 projects/9,638 spaces, up 34% and 25% year over year, respectively, thanks to growth in Panama. Meanwhile, hotel building in the Caribbean and Mexico is still at a standstill, with no signs of recovery. The overall Caribbean pipeline remained unchanged from the previous quarter at 65 projects/12,177 rooms, while Mexico's pipeline remained unchanged at 115 projects/17,314 rooms.
Expansions of Notable Hotels in Latin America
With the completion of the 301-room Westin Lima Hotel & Convention Center in Lima, Peru, Starwood Hotels debuted the first Westin Hotel in South America. With over 28,000 square feet of meeting space, this is the country's largest conference center. The hotel is being built under a franchise agreement between Starwood and Grupo Libertador, a Peruvian hotel company. This year, Starwood will open three more Westin properties in Latin America, including two in Panama and one in Guadalajara, Mexico.
Marriott Hotels has announced plans for a 278-room hotel in Cartagena, Colombia. The project will be run by Promotora El Faro S.A., which is owned by Spazio Urbano, under a management agreement. The hotel, which will be Marriott's third in Colombia, is set to open in 2014.
The InterContinental Hotel, Resort, and Spa is currently under construction in Punta Piqueros, Chile. The 140-room new build project has a 20-year management deal with IHG. The hotel is set to open in June 2013 near Vina del Mar, Chile's largest beach resort city.
In the first quarter of this year, eight Accor-branded ventures were launched in Brazil. There are two Novotel hotels, three Hotel Ibis hotels, and three Hotel Formule 1 hotels. In addition, the company announced three new projects in Brazil, including two more Hotel Ibis projects and a 280-room Pullman Hotel in Belo Horizonte that will open in the spring of 2013.
The 534-room Paradisus Playa del Carmen La Esmeralda and the 325-room, adults-only Paradisus La Perla, two of Sol Melia's flagship all-inclusive resort projects in Playa del Carmen, Mexico, have begun construction. Both projects are set to open in November of this year.
The Dominican Republic will be home to Hyatt's first Hyatt Regency hotel. There will be 212 guestrooms and 46 private residences at the Hyatt Regency Cap Cana. The project is expected to start construction within the next 12 months, with an early 2014 opening date.