LATIN AMERICA PIPELINE
The top five global franchise companies account for 30 % of the region ’ s pipeline rooms . Also noteworthy : Of the Caribbean ’ s 87 projects , 15 have more than 500 rooms , which accounts for 45 % of the Caribbean ’ s total pipeline rooms .
TOTAL PIPELINE Q315 LATIN AMERICA (% PROJECTS YEAR-OVER-YEAR )
869 projects / 153,102 rooms (+ 11 %) 414 projects under construction (+ 5 %)
176 projects scheduled to start in next 12 months ( -2 %)
279 projects in early planning (+ 34 %)
TOP FRANCHISE COMPANIES Q315 AccorHotels : 97 projects / 15,992 rooms
Marriott International : 54 projects / 9,245 rooms
Choice Hotels International : 48 projects / 7,989 rooms
Hilton Worldwide : 48 projects / 6,894 rooms
InterContinental Hotels Group : 40 projects / 5,962 rooms
TOP BRANDS Q315 Hotel Ibis : 38 projects / 5,470 rooms Ibis Budget : 26 projects / 4,157 rooms Comfort Inn : 22 projects / 4,030 rooms City Express Hotel : 22 projects / 2,505 rooms
Hampton Inn & Suites : 21 projects / 2,304 rooms
TOP MARKETS Q315 (% PROJECTS YOY )
Rio de Janeiro : 48 projects / 9,954 rooms (+ 11 %)
Campinas , Brazil : 38 projects / 7,124 rooms (+ 35.7 %)
Sao Paulo , Brazil : 34 projects / 7,143 rooms (+ 9.7 %)
Mexico City : 15 projects / 1,969 rooms (+ 25 %)
Curitiba , Brazil : 13 projects / 2,498 rooms (+ 30 %)
TOP COUNTRY / REGION Q315 (% PROJECTS YOY )
Brazil : 49 % of pipeline rooms ; 416 projects / 74,360 rooms (+ 10 %)
Mexico : 19 % of pipeline rooms ; 179 projects / 29,313 rooms (+ 18 %)
Caribbean : 15 % of pipeline rooms ; 87 projects / 23,069 rooms (+ 32 %)
Source : Lodging Econometrics that spectrum , at least in terms of positive attention : The New York Times named Mexico City one of its top travel destinations in 2016 . “ It ’ s starting to hit its stride as a leisure and commercial destination ,” Dickinson says .
Hilton has grown in Mexico , with 10 hotels opening in 2015 and eight more coming this year . “ We ’ ve seen sustained strength , both in industrial cities and the interior ,” says Tom Potter , senior vice president of operations for the Caribbean and Latin America at Hilton Worldwide . The company added nearly 20 hotels and about 3,000 rooms to its Latin American and Caribbean portfolio in 2015 .
“ Our growth plans in Mexico cover cities and resorts , from select service to luxury ,” says Victor Vazquez , vice president of development and acquisitions at Starwood Hotels & Resorts . “ We don ’ t have one strategy for Mexico .” The company plans two more hotel openings in 2016 , in Punta de Mita on the Pacific and the island of Cozumel in the Atlantic , and the November announcement of its acquisition by Marriott International didn ’ t break its stride . Vazquez compares Mexico ’ s market to Peru , where he says two Aloft boutique hotels are in the pipeline .
Fën Hotels ’ Esplendor Punta Carretas in Montevideo , Uruguay : The Argentinabased company will use a US $ 300 million infusion to expand in Latin America .
Opportunity amid challenges Cuba , which restored diplomatic relations with the U . S . in 2015 after more than 50 years , offers a potential opening for hotel investment and development by American companies . However , commercial , economic and financial embargoes remain . “ A lot of investors have been down there ,” JLL ’ s Dickinson says . “ We are keeping an eye on Cuba , but it ’ s premature to do anything concrete there .” More concrete opportunities — US $ 300 million worth — came from George Soros ’ Quantum Strategic Partners , which announced an investment in Fën Hotels that will give the Buenos Aires , Argentina-based franchise and hotel management company the means to expand in at least 10 Central and South American countries ( see interview on p33 ). One country not on that list , though , is Brazil . Fën CEO Patricio Fuks says development costs are still too high . “ From our point of view , it is still an expensive country in which to invest ," he says .
“ Everybody is trying to figure out what Brazil is going to do ,” Atlantica ’ s Sistare says . “ We ’ re not seeing the bottom yet — we ’ re looking over the side and seeing the abyss .”
32 HOTELS March 2016 www . hotelsmag . com