Hotels are among the leading asset class for investment in Brazil according to Jones Lang LaSalle hotel research team. Brazil’s economy, while exposed to the global financial crisis, is forecast to suffer less and for a shorter duration than the worlds mature economies.
Devaluation of the Brazil Real since Sept 08 has prompted a favourable dichotomy for Brazilian hotels: its more expensive for Brazilians to travel abroad, while less expensive for incoming foreigners. Brazil has a very favourable medium to long-term outlook for hotel fundamentals with over 50% of households being middle class, and upper class now accounting for 16% of households.
Currently only 12% of hotels in Brazil are affiliated with international brands, however that is changing with the realisation of this enormous market gap. “Branded hotels present the most viable investment opportunity in Brazil due to the strong domestic market” said Clay Dickinson, executive VP for Jones Lang LaSalle Hotels. Full story at Hotel Interactive.
Tags: Brazil, Investment, Luxury Resorts, Real Estate, Resorts
