Posts Tagged ‘Luxury Resorts’

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 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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Branded hotels are leading asset class investment in Brazil

Posted by Pioneer Land Group in Real Estate.

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.

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