The latest data from
Lodging Econometrics also shows that development activity in Mexico City,
Riviera Maya, and the Dominican Republic is surging.
LATIN AMERICA - The hotel construction
pipeline in Latin America is surging slightly, according to the latest data
from Lodging Econometrics.
New
construction projects in Latin America total 579 projects with 95,144 rooms.
Renovations and conversions total 139 projects with 25,790 rooms. At the close
of Q3, there were 93 new projects with 15,416 rooms, the largest number of new
projects and rooms since the second quarter of 2017. New construction starts
show 54 projects and 9,433 rooms, which is the highest both numbers have been
since the third quarter of 2019.
“Our
latest publication of the Latin America Construction Pipeline Trend Report
seems to be showing similar development trends to what we are seeing in the
United States,” said Bruce Ford, vice president of global business development for Lodging
Econometrics. “Announced renovation and brand conversion announcements are
accelerating, while the cost of capital and elongated project timelines remains
the challenge.”
The
areas with the most development activity in the region are resort locations
like Mexico City, Riviera Maya, and the Dominican Republic.
“There
is no real catalyst for hotels to go in the ground unless they are long-planned
resorts in well-developed areas or select service properties in larger cities
like Mexico and a few other select countries,” Ford said.
The
future pipeline for Latin America is also encouraging, but slower to recover.
The LE forecast for the region shows 107 upcoming projects (and 16,273 rooms)
scheduled to open in 2024, which is an increase over the 2023 forecast, which
marked a record high for hotel openings in the region.
“While
Latin America is generally on a slower path to recovery, signs are beginning to
brighten in the region and will continue through the summer months,” Ford said.
Earlier in January, we talked
about the construction pipeline in the U.S.