The Brazilian hotel sector has a bright future ahead, despite the wider challenges faced by the country’s economy.
JLL’s latest Lodging Industry report for 2015 shows that Brazil’s hospitality market has registered another year of positive results.
Brazil’s urban and condo hotels posted positive RevPAR (Revenue per Available Room) growth of 1.4 per cent for 2014 – the tenth year of annual growth in a row.
In terms of hotel supply, in 2014, there was also a 3.1 per cent increase in the number of rooms across the country, boosting the supply in Brazil. Alongside this, the rise in branded hotel rooms, of both national and international hotels, was even more significant, growing by 7.9 per cent in 2014.
The publication, which surveys 460 Brazilian hotels, ranked Accor at the very top for 2015, a position held by the global group over the last few years. At present, the company has 36,636 hotel rooms under management across 219 hotels, the largest number in the country.
Thanks to the demand for good quality hotel brands and the top ranking of Accor in the country, award winning Brazilian developer Ritz-G5 has launched two hotel development projects that extend the brand’s reach still further. Four-star hotels the Mercure Natal and the Piramide Natal will both be managed by Accor upon opening.
“We are thrilled to be involved in Brazil’s affluent hotel sector at a time of such growth and potential,” comments Ritz-G5’s CEO, Luiz Fernandes.
“Over the next 12 months, the international gaze will be firmly on Brazil, especially in light of the forthcoming Olympic Games, with many tourists visiting the country for the first time. It is essential that the hospitality industry flourishes at this time, laying the foundations for a bright future.”
Indeed, in 2014, Brazil saw the highest level of investment transaction volume in the country’s history, with the three major investment transactions all involving private equity funds: the Quantum Fund, the GTIS Fund and the HSI Fund.
Looking ahead, JLL forecasts that the expected spark to the country’s economic recovery, and the staging of the Olympic Games in Rio de Janeiro, will bring greater prospects for hotel performance in 2016.