Brazil’s hotel sector has happy New Year

 

Brazil’s hotel sector celebrated a very happy New year, with occupancy rates in Rio de Janeiro reaching 98 per cent.

Figures from the Brazilian Association for Hotels highlights the strength of the commercial property market. Indeed, investment in the sector is expected to reach €4 billion over the coming years.

The data arrives as the city prepares to host the Olympic and Paralympic Games this summer, boosting tourism as well as investment. With visitor numbers set to swell once more, the hotels will need to be able to meet demand. With 59 per cent of the country’s hotels currently in major cities, expanding outside of this is predicted to have a significantly positive impact. Indeed, the industry is focused not just on expanding their number of rooms but also on opening up new areas to visitors.

Miller Reis, Sales Director of leading developer Ritz-G5, which is developing a range of projects in the northeast of Brazil, comments: “We’re seeing an increasing demand for access to the ‘real’ Brazil. Visitors love the pace and excitement of the big cities like Rio and São Paulo, but they also want to see what else Brazil has to offer. Alongside this, people like brands in which they can trust and therefore we’ve witnessed a spike in requests for branded, western-style hotels in places like Natal, in the northeast of the country.”

When relaxing back at the hotel, they can enjoy the private swimming pool and 24 hour concierge service. Investment into Mercure Natal starts from just £110,000 for a 24m² suite, spread over 36 months with a 9 per cent return per annum given on the full investment amount.

Between this and another hotel, the two projects will add 567 branded rooms to Natal. Overall, Brazil’s current capacity of 94,000 rooms is expected to rise substantially by 74.5 per cent, to reach 164,000 rooms, by 2020.

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