Lodging Econometrics’ Q2 2024 Latin America Construction Pipeline Trends Report reveals that the region can expect steady growth in new hotel openings through 2026.
The projected growth is supported by the region’s growing construction pipeline, which currently stands at 612 projects (97,597 rooms), marking an 11 percent increase in projects and a 10 percent increase in rooms year over year.
Among the countries with the largest number of projects in the pipeline at the end of the second quarter were Mexico, with 226 projects and 33,599 rooms, followed by Brazil, with 93 hotels and 13,911 rooms. The two countries account for 52% of the projects and 49% of the total number of rooms in the pipeline. The Dominican Republic is next, with an all-time high of 51 hotels and 12,695 rooms, followed by Colombia, with 27 hotels and 3,671 rooms.
In the case of the Dominican market, the expansion of hotel projects is driven by new destinations, such as Miches, Cabo Rojo, in Pedernales, and the ambitious Punta Bergantín, an initiative that is expected to revive tourism on the country’s northern coast.
At the end of the second quarter, Latin America had 253 projects with 44,319 rooms under construction, reflecting a year-on-year increase of 11% in projects and 15% in rooms.
In addition, projects scheduled to begin construction in the next 12 months totaled 187 hotels and 29,476 rooms, a year-over-year increase of 18% in projects and 17% in rooms, while projects in the early planning stage increased 3% year-over-year to 172 hotels and 23,802 rooms at quarter-end.
Key chain-scale segments in Latin America at the end of the second quarter included the upscale segment with 133 hotels and 18,807 rooms, the upper upscale segment with 101 hotels and 20,234 rooms, and the luxury segment with 96 hotels and 17,154 rooms.
Renovation and conversion activity is also on the rise in the region, with a record 186 hotels and 29,500 rooms at the end of the second quarter, representing a 30% year-over-year increase in projects and an 11% increase in rooms.
New projects announced in Latin America during the second quarter were up 32% year over year, with 62 hotels and 8,740 rooms.
In the first half of 2024, 40 new hotels and 8,730 rooms opened in Latin America. LE’s forecast for the remainder of the year calls for an additional 60 new hotels with 8,825 rooms to open in the third and fourth quarters, totaling 100 new hotels with 17,555 rooms by year-end.
LE’s new hotel openings forecast anticipates a steady increase in new hotel openings with 111 new hotels and 18,816 rooms expected to open in 2025, and a further increase in 2026 to 131 new hotels with 18,293 rooms expected to open.
Source:Arecoa.com
