Brazilian Hotels Posting Double-Digit Performance Growth

Brazilian Hotels Posting Double-Digit Performance Growth

Jones Lang LaSalle Hotels today released its bilingual research study, Lodging Industry in Numbers – Brazil 2011, which reveals that Brazil's continued high economic growth is spurring high revenue per available room (RevPAR) growth in the hotel sector for the second consecutive year.

In 2010, the country posted the highest RevPAR growth rate on record at 17.3 percent, and hotel performance in 2011 is tracking at a similar increase, with growth on pace to reach the double-digit mark again this year.

The firm's annual report provides a detailed performance analysis of nearly 400 hotels, condo hotels and resorts in Brazil and is the largest surveyed sample of hotels available in the region.

This is based on the firm's database of hotel projects that will be affiliated with the dominant hotel chains present in Brazil. The pipeline of properties in these stages encompasses 198 hotels with 30,500 rooms, largely concentrated in the economy and mid-market segments.

Additionally, with only approximately 27 percent of hotel room stock in the market affiliated with an international or domestic brand, the opportunity for the expansion of branded product remains strong.

Brazil possesses solid long-term fundamentals, a rapidly growing middle class, rising demographic trends, a diversified list of trading partners and tepid supply pipeline. "The investment cycle is gaining continued momentum, including further announcements of foreign brands planning a multi-unit roll out of hotel product.

Moreover, the consolidation of domestic players is expected as the country gears up for the FIFA Soccer World Cup in 2014 and the 2016 Summer Olympic Games in Rio de Janeiro," said Gorni.