Latin America’s Hotel Construction Pipeline Enters Third Year of a Cyclical Slowdown

/Latin America’s Hotel Construction Pipeline Enters Third Year of a Cyclical Slowdown

Latin America’s Hotel Construction Pipeline Enters Third Year of a Cyclical Slowdown

|2019-05-30T11:51:20-04:00May 30th, 2019|

May 30, 2019 – PORTSMOUTH, NH – In the recent Latin America hotel construction pipeline trend report, analysts at Lodging Econometrics (LE) state that the total construction pipeline stands at 717 projects/123,804 rooms, down 8% year-over-year (YOY) as it enters the third year of decline from its 2015-2016 peak.

Projects presently under construction stand at 329 projects/57,735 rooms. Projects scheduled to start construction in the next 12 months stand at 207 projects/34,712 rooms and those in the early planning stage are at 181 projects/31,357 rooms.

The first quarter of 2019 had 29 new hotels/5,405 rooms open. The LE forecast for the remainder of the year shows another 126 new projects/19,687 rooms opening. In 2020, LE’s forecast for new openings is expected to increase to 176 projects/28,698 rooms.

Mexico leads Latin America’s construction pipeline with a record-setting 205 projects/34,426 rooms. Next is Brazil, who’s pipeline peaked in the first quarter of 2015 at 453 projects/79,431 rooms in preparations for the Olympic Games and now stands at 161 projects/26,877 rooms. Together both countries account for 50% of the total pipeline. Colombia follows with 46 projects/7,727 rooms, then Peru with 46 projects/6,351 rooms. The Dominican Republic, which continues to flourish, is at an all-time high with 34 projects/11,226 rooms, a 48% increase in projects, YOY.

Cities in Latin America with the largest pipelines include Lima, Peru with 32 projects/4,889 rooms; Mexico City, Mexico with 25 projects/4,309 rooms; Cancun, Mexico with 19 projects/6,379 rooms; Sao Paulo, Brazil with 17 projects/2,864 rooms; and Cartagena, Colombia with 15 projects/2,797 rooms. The fast-growing markets of Lima, Peru and Cartagena, Colombia currently have pipelines of 58% and 46% of their existing census.

Top hotel franchise companies in Latin America’s construction pipeline are: AccorHotels with 112 projects/15,231 rooms, Marriott International with 102 projects/16,356 rooms, Hilton Worldwide at a record high of 80 projects/11,904 rooms, and InterContinental Hotels Group (IHG) with 52 projects/6,525 rooms. These four companies are responsible for 48% of the projects in the total construction pipeline.

The top brands in the pipeline are AccorHotel’s Ibis brands with 73 projects/9,408 rooms, IHG’s Holiday Inn Express with 20 projects/2,403 rooms, Hampton by Hilton with 20 projects/2,368 rooms and Hilton Garden Inn with 19 projects/2,763 rooms. These are followed by Marriott’s Fairfield Inn with 15 projects/2,285 rooms and Residence Inn at an all-time high of 10 projects/1,442 rooms.

About Lodging Econometrics

Lodging Econometrics is the leading provider of global hotel intelligence. Combining unparalleled industry experience, a real-time pulse on market trends and extensive knowledge of key decision-makers, LE delivers actionable business development programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. LE’s programs turn a client’s business goals into opportunities that advances their competitive advantage.

Contact: Colleen Brennan

cbrennan@lodgingeconometrics.com/+1 603.427.9544

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