Written by Support Staff Real Estate Connections TV Saturday, 12 September 2009 17:07
Plagued by the global recession that has slashed both business and pleasure travel, the hotel market is suffering on an international level and investors have backed away from buying or building in most locations, with a few exceptions--like Brazil. According to a new report by real estate services firm Jones Lang LaSalle Hotels, the positive long-term growth forecast for Brazil is popping up on the radar of those who are in the position to invest.
But it's not just the contingent of international travelers--attracted by the devaluating national currency--that is keeping Brazil's hotel market afloat. The country's burgeoning middle class is also a factor in the lodging industry's stability amid global economic turmoil, and its auspicious long-term outlook. The middle class has expanded 10 percent since 2004, currently accounting for 52 percent of the population. The upper middle class is also growing, presently representing 16 percent of the population.
All signs point to Brazil being fertile ground for investment, but not for every type of investment. Acquisitions, as per the JLL study, will not prove a very fruitful endeavor in the immediate future, but will eventually become a more viable option when investors gain further knowledge of property values, and more owners begin to pursue the disposition of assets.
On the other hand, development presents one of the best opportunities for foreign investors, specifically development of properties carrying the flags of international and national brands, which currently comprise a mere 12 percent of the country's hotel offerings. Among the companies that are making moves to capitalize on the dearth of branded hotels is England-based InterContinental Hotels Group, which announced agreements for the construction of four new Holiday Inn Express properties just last week. According to statistics published in March by hotel real estate research firm Lodging Econometrics, Brazil leads Latin America in hotel construction activity.
Brazil is just one of a bevy of locations that continue to attract foreign investors in the currently challenging global economic climate. Given the severe decline of most of North America's hotel markets, U.S. investors are looking just about everywhere else for opportunity. Last week, Miami-based Desires Hotels launched Desires Hotels International to expand its boutique hotel brand into such locales as Mexico and South America, as well as Europe and coastal Africa. In April, Parsippany, N.J.-headquartered Wyndham Hotel Group revealed its Ramada Worldwide chain's plans for a new 1,000-room hotel in China's Hainan province. Also in April, IHG disclosed that it would increase its presence in India by 7,800 guestrooms with the development of 31 new hotels over the next several years, and the company announced in March that it would build the world's largest Holiday Inn--in Moscow.
TrackBack URI for this entry
Subscribe to this comment's feed
| < Prev | Next > |
|---|
South America Latest Real Estate News
| ‘Biggest homebuilder’ to boost Brazilian property 09/05/2010 | UV10 People looking to buy property in Brazil could be boosted by the news that two of the country’s largest homebuilders will combine to be its largest real estate company. |
| Gujarat Realtors to explore business in Argentina and Brazil 25/04/2010 | Coal Geology Gandhinagar, April 14 (Coal Geology) One hundred real estate developers from Gujarat will visit Argentina and Brazil in July to explore business opportunities in the two south American countries.Suresh Patel, president of Gujarat Institute of Housing and Estate Developers (GIHED), Wednesday said the tour was mainly aimed at taking a closer look at developing greenfield projects there. ‘We [ ... ] |
| Cartagena, Colombia Real Estate: Ready for Center Stage 22/01/2010 | Nuwire Investor  With Colombia's reputation sullied by drugs, guerrilla wars and kidnappings, it is hard to view the country as a tourist destination let alone as a retirement haven. Yet, that is exactly what people who have fallen in love with Cartagena say about the coastal city. "Cartagena is a great place for retirement. I have met many Americans who live in the city and they seem very happy to be [ ... ] |
| Chile Parque Arauco To Sell Stake In Alto Palermo 18/01/2010 | The WallStreet Journal  SANTIAGO (Dow Jones)--Chilean shopping center developer Parque Arauco S.A. (PARAUCO.SN) agreed to sell its 30% stake in Argentine mall operator and developer Alto Palermo to its partner in neighboring Argentina, IRSA Inversiones y Representaciones S.A. (IRS, IRSA.BA), for $126 million, the company said Thursday. |
| Brazil Real Estate: Top Factors Affecting Growth 14/01/2010 | Nuwire Investor  Brazil has been thriving under Lula da Silva who introduced a number of crucial reforms that have led to lower unemployment, a higher PDI and encouraging GDP growth rates. The hosting of the 2014 FIFA World Cup and the Olympic Games in 2016 gives Brazil’s booming real estate market, as well as other industries, an additional boost. See the following article from Global Property Guide [ ... ] |
| New Work on Chile’s Stalled Torre Costanera Project May Be Sign of Economic Revival 27/12/2009 | Emerginvest  As far as economic indicators go, Chile’s stalled Costanera Center, the unfinished 984 foot tall tower in the heart of Santiago’s gleaming financial district, is harder to ignore than most. Construction of the tower, part of a US$600 million commercial real estate development overseen by Chile’s Cencosud S.A. (Santiago Stock Exchange: CENCO), stopped in January, 2009. However, a sign [ ... ] |
| Uruguay Real Estate: Why Its The Perfect Location For Expatriates 31/10/2009 | Nuwire Investor  The picturesque, sleepy Uruguay town of Punta del Este represents a unique opportunity for savvy investors. Boasting affordable real estate, a remarkably high standard of living, and a party season each summer that transforms the town into a prime spot for South America's rich and famous, Punta del Este is primed for a real estate boom. See the following post from Daily Wealth for more on th [ ... ] |
| Venezuela to pay off $4.6bn debts 25/09/2009 | BBC  Venezuela will pay off more than $4.6bn (£2.8bn) in debts owed by its state-run oil producer in an attempt to boost its slowing economy. |
| House Hunting in ... Colombia 14/09/2009 | The New York Times  MARKET OVERVIEW Over the past five years, prices in Cartagena have skyrocketed by as much as 300 percent—and even 600 percent in some cases, said Patrick Enste, general manager at La Heroica, a luxury travel and real estate company. |
| While Hotel Investment Activity Languishes in the U.S., Market Remains Viable in Brazil 12/09/2009 | Support Staff Real Estate Connections TV  Plagued by the global recession that has slashed both business and pleasure travel, the hotel market is suffering on an international level and investors have backed away from buying or building in most locations, with a few exceptions--like Brazil. According to a new report by real estate services firm Jones Lang LaSalle Hotels, the positive long-term growth forecast for Brazil is [ ... ] |
