Archive for the ‘Resorts’ Category

Brazil hotel revenue increases 15% y-o-y and average hotel occupancy now over 70%

Posted by Pioneer Land Group in Resorts.

Following recent news from the IMF that they have readjusted their forecast higher for Brazil’s growth in 2010, now 5.5%, it seems the economists are proved right and Brazil is set for a number of prosperous years of economic growth ahead.

For Pioneer Land Group our interest is the luxury hotel industry specifically, and this week we received more good news as leading independent global hotel analysts STR Global announced the Brazil’s hotel industry is going from strength to strength. Official data released shows Brazil average hotel revenue has grown over 15% year-on-year over the past 12 months, and currently averages over 70% occupancy across its hotel industry (over 10% higher occupancy than any other country in North or South America).

As Natal Ocean Club Resort & Spa prepares to become Brazil’s flagship luxury resort under experienced management from the Preferred Hotel Group, it is pleasing to know that large numbers of visitors from around the world will soon come to explore this beautiful area and delight in the luxurious Natal Ocean Club. For full details on the hotel figures released please click here.

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Onwards and Upwards for the hotel industry

Posted by Pioneer Land Group in Resorts, Tourism.

The global recession has affected almost every industry in one way or another over the past 18 months and travel and tourism is no exception. Hoteliers the world over have seen occupancy levels drop off as more and more people looked to stay at home for their annual vacation. Whilst hotels in the budget category have shown a degree of resilience against the mighty credit crunch, the luxury brands have endured a rockier time. That is until now….

Last month the worlds leading hoteliers gathered in New York at the International Hospitality Industry Investment Conference to examine what lies in store for the remainder of 2009 and beyond. On the whole the event was largely positive with many recognisable brands stating that they believed the worst was behind them. In fact some companies indicated they should start to see signs of the year improving.  Many believe their remains considerable pent up demand from last year as many businessmen and companies put meetings on hold, Gary Mendell from HEI Hotels and resorts states “Even if there is a down market, you can’t not have people getting together for two years in a row” an opinion repeated by both the Hilton and Starwood Hotel Groups CEO’s.

This is undoubtedly some positive news, what is of even greater interest is the sentiment towards Brazil. Accor CEO Giles Pelisson spoke optimistically of the economies of Brazil and China saying they “have some muscle and can deliver the strongest growth”. With only 12% of hotels in Brazil having an affiliation with an internationally distinguished name, luxury hoteliers the world over are recognizing the importance of the Brazilian market.

The Luxury sector is an area of particular importance to Christopher Nesseta, CEO of the Hilton Hotels Group, he believes the coming decade is going to offer some exciting developments in the world of luxury services, and in a determined vote of confidence, Hilton are expanding their luxury presence worldwide by developing several new Waldorf-Astoria projects by the end of 2009. An attitude echoed by Frits van Paasschen the CEO of Starwood Hotels & Resorts.

This blog was adapted from the article Hotels CEOs: ‘The Worst Is Behind Us’ by Lauren Darson writing for www.management.travel

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Brazil branded hotels just 12% of market, rapidly expanding

Posted by Pioneer Land Group in Resorts.

New recently released from Bloomberg, Brazil’s hotel business is currently led by independent owners, with just 12% of the country’s hotels affiliated with an international or national brand, according to Gregory Rumpel, executive vice president at Jones Lang LaSalle Hotels.

Now the situation is changing, with foreign travelers and hotel operators alike, gaining more and more interest in the country. Brazil’s overall ranking amongst South American travel destinations rose to third this summer, behind Colombia and Peru.

Around 124 hotel building projects are underway, most of which are affiliated with a hotel brand, according to the LaSalle Hotels report released today. “We’ll start to see more larger-scale, 150-rooms-plus, hotels that will be mostly run by large international brands,” Rumpel said. “The number of rooms in Brazil in the next five years will be evenly split between international brands and local independents.”

Accor, the French company that is the largest international operator in Brazil, runs 133 hotels with 22,510 rooms in the country, according to the LaSalle report. Intercontinental Hotels Group Plc, based in Windsor, England, has five hotels with 2,006 rooms and Bethesda, Maryland-based Marriott oversees three hotels with 804 rooms.

Hilton Hotels Corp also manages two hotels with 846 rooms in the country and has a third under construction. “Hilton has plans to continue growing in Brazil, and is evaluating several markets at this time,” according to Karla Visconti a company spokesperson.

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Brazil Hotels rates increase 5.5% first half 2009!

Posted by Pioneer Land Group in Resorts.

Average Daily Rates in Brazil hotels increased by 5.5% in the first half of 2009 according to Smith Travel Research, up 17% since mid 2006. Rates also have climbed a staggering 12% in Rio de Janeiro and occupancy levels in the alluring beach destination increased 5.6%.

Brazilian hotels hit a record year of revenue per available room RevPAR during 2008, according to Jones Lang LaSalle Hotels’ annual research study “Lodging in Numbers”. The firms one-of-a-kind report provides a details performance analysis of more than 300 Brazilian hotels, condo hotels and resorts. “Over the past four years, Brazilian RevPAR growth averaged 9% annually, outstripping the country’s GDP growth” said Ricardo Mader executive VP for Jones Lang LaSalle Hotels in Sao Paulo. “If the current growth estimates of the Brazilian economy for the second half of 2009 are achieved, RevPAR is set to record positive growth during the year” said Manuela Gorni, senior VP for Jones Lang LaSalle Hotels.

Approximately 87% of hotels in Brazil are unaffiliated with any major international or domestic brand, however the proportion of branded hotels is on the rise as the market continues to be sought after by upper class Brazilian and foreign visitors.

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Brazil investment hotspot amongst hotel investors

Posted by Pioneer Land Group in Resorts.

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.

Brazil’s hotel market hasn’t gone unscathed in the widespread economic downturn, however it continues to have comparatively good numbers and desirable fundamentals. Devaluation of the country’s currency is playing a part in the market’s success. The value of the Brazilian real has been on the decline for the last nine months, which makes it more cost effective for foreigners to visit. As a result, occupancy levels at Brazil’s resort hotels have increased, and the numbers have risen for upscale urban properties that denominate rates in U.S. dollars. And given the limited availability of institutional quality hotels, with international and national brands currently comprising a mere 12% of the country’s hotel offerings, average RevPAR is on target to continue to grow for the rest of the year.

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% since 2004, currently accounting for 52 percent of the population whilst the upper middle class is also growing, presently representing 16% of the population.

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Natal Ocean Club Resort & Spa first luxury resort in Brazil to earn Preferred Status

Posted by Pioneer Land Group in Resorts.

Natal Ocean Club Resort & Spa has become the first luxury resort in Brazil to be included in the prestigious portfolio of Preferred Hotels & Resorts.

Preferred Hotels & Resorts is the ultimate luxury collection, featuring 185 exceptional hotels and resorts in the most desirable locations around the world. The hotels must achieve Preferred Hotels’ award-winning Standards of Excellence™, an extensive quality assurance program that has been honored with the “Best Practices Champion Award” by Cornell University. For more than 40 years, the brand’s legendary commitment to quality has ensured an unparalleled guest experience, from the very best amenities to superb service. Preferred Hotels is proud to be a global leader in the hospitality industry, delivering high-performance sales, marketing and technology solutions to hotels and resorts in over 75 countries. www.PreferredHotels.com

“Earning Preferred rating is a fine accomplishment by the owners, managers and staff of Natal Ocean Club. Preferred Hotels & Resorts will reach the discerning travelers that have a preference for individualized experiences, for anticipatory service, for sophisticated style – for Preferred Hotels & Resorts.  Our team is dedicated and equipped to deliver the finest resort, amenities, and most memorable experience for guests from all parts of the world,” commented John Sears (john.sears@nataloceanclub.com), general manager of Natal Ocean Club Resort & Spa. For additional information call +1-480-221-7846 or visit www.NatalOceanClub.com.

Full announcement on Hotel Interactive.

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Brazil Hotels Outperform Hotel Markets in Mature Economies

Posted by Pioneer Land Group in Resorts.

Jones Lang LaSalle Hotels one of the foremost authorities on global hotel real estate, recently published a report entitled ‘Investment case for Brazil’. The report provided in depth analysis on the current Revenue per available room (RevPAR) figures as well as looking at the investment case for Brazil moving forward. JLL recognised that the exposure to the global financial crisis has affected the industry globally; Brazil was well positioned to suffer less and for a shorter duration, especially against the markets of North America and Europe.

Ricardo Mader the executive vice president for JLL Hotels in Sao Paulo said that “The devaluation of the Brazilian real (BRL) since September 2008 has prompted a favorable dichotomy for Brazilian hotels: it’s more expensive for Brazilians to travel abroad, while it’s less expensive for incoming foreigners. Thus, the country’s resort hotels have seen a boost in occupancy. Upper-tier urban properties that denominate their rates in U.S. dollars are also seeing a positive impact from the devaluation, because operators can now collect more BRLs per dollar earned” This coupled with a very low level of internationally recognised hoteliers in Brazil means that RevPAR in Brazil is set to continue to grow throughout 2009.

This last point is of particular interest, only 12% of hotels in Brazil are affiated with an international or national hotel brand, highlighting a tremendous opportunity to capture a considerable slice of this market.

Long-term the fundamentals continue to stack up; demand is driven by an emerging middle class, of which they now make up 52% of Brazilian households compared to 42% in 2004. There has also been an increase in the number of upper class households as well, accounting for 16% of the population.

To conclude Clay Dickinson, Executive Vice President for JLL Hotels said “The bottom line is that as the availability of private-sector debt gradually starts to increase again, investors will be able to achieve higher returns on their investments and their exit will have a lower execution risk due to the increased liquidity”.

Full report here: http://www.hotelinteractive.com/article.aspx?articleid=13862

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