CHRIS-HOLA notebook

MIAMI – In one-on-one meetings during last week’s CHRIS-HOLA conference in Miami, we received updates from Wyndham, Hyatt and from the Ministry of Tourism for Ecuador.

Here are highlights from those interviews:

Gustavo Viescas, president, Latin America and Caribbean, Wyndham Hotels & Resorts.

What’s hot on the development front? According to Viescas, it’s the Dominican Republic and business hotels in Mexico.

Wyndham opened 20 hotels in the region last year, half of which were new development. It signed 45 deals in 2023, with Brazil among its strongest markets.

Viescas also cited Puerto Rico and resorts in Mexico for strong RevPAR performance.

In the all-inclusive space, he said midscale is Wyndham’s niche and differentiated from all the upscale and luxury players. Today, Wyndham has some 30 properties in the space, including four Alltra properties open and two more coming this year in the Dominican Republic.

Among the challenges in the region: labor, both at the property level and corporate, as well as the impact of higher interest rates on development. However, Viescas noted that with 50% of owners still independent, opportunities for conversions remain abundant and he said Wyndham is being very flexible with its various brand offerings.

What’s next? With near shoring growing in Mexico, it will be business hotels in Mexico. Viescas cited Monterrey, which now has between 20 and 30 industrial parks.

Cristiano Gonçalves, vice president of development, South America & the Caribbean, and Antonio Fungairino, head of Inclusive Collection development, Latin America & Caribbean, Hyatt Hotels Corp.

Hyatt just announced a deal with El Pardo Hospitality to develop The Legend Paracas Resort in Paracas, Peru, which will join the Destination by Hyatt brand and mark the introduction of the brand in South America. The hotel is undergoing a phased enhancement project to elevate guestrooms, offer new culinary options, and redesign public areas, and will join the brand in June 2024.

Gonçalves said franchise deals like this are very competitive and Hyatt is working very creatively on terms for conversions.

He added that Hyatt has just one other project in its South America pipeline and is pursuing multiple leads, half of which are conversions. Gonçalves expects more conversion and development deals in Brazil. He is also bullish about Colombia, Chile, Peru and Argentina.

In the all-inclusive arena, Fungairino said Hyatt’s dominant distribution through Apple Leisure Group gives them a distinct development advantage. They will open two all-inclusive resorts in the Dominican Republic toward the end of 2024 with three more there in the pipeline.

Gonçalves also said a property in Aruba is coming soon and that a hotel in Mazatlan, Mexico, just opened. He also referenced St. Lucia, where three properties are under development.

Mexico also presents a big opportunity for Hyatt, according to Gonçalves, who likes the increasing potential of Costa Rica where “it is getting easier to develop.”

Mateo Estrella, Ministerial Advisory, Ministry of Tourism Ecuador

Ecuador has enacted a new law for hospitality investors of more than $100,000 that provides tax-free status (otherwise 25% tax) for seven years, according to Estrella.

He said local investors are already taking advantage of the tax break with the best opportunities coming for business hotels and eco-hotels around the country’s national parks.

As a result of the new incentive, Estrella said their goal is to finalize 10 new hotel investments over the next three years.

To that end, Estrella said Ecuador has signed a trade agreement with the UAE, there is interest in funds from the U.S. and next a mission of German investors is coming to look at opportunities.

At the same time, Estrella said, the country is reducing its fuel tax for aviation 1% a year until it reaches zero, and that a 5% tax to repatriate funds is no longer in effect.