The BrazilianTourism Board known as “Embratur” has lauched the 2nd phase of their “Brazil Sensational” advertising campaign with an overhaul of their website www.brasilnetwork.tur.br. With an advertising budget for the US alone of $13m, the Embratur president highlighted that key audiences increasingly use the internet as their sole source when booking travel packages, airfare and hotels. “Not only does the Brazil Network provide information for the consumer, but it is also significant for business travelers, tour operators and travel agents” says Walter Vasconcelos, Embratur Director of Marketing. For the full story visit Reuters: http://www.reuters.com/article/pressRelease/idUS122065+01-Sep-2009+PRN20090901
Posts Tagged ‘hotels’
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.
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.
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.
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
