Development updates from meeting with Wyndham, Hyatt and Ecuador.
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.

Gustavo Viescas, Wyndham Hotels & Resorts
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.

Cristiano Gonçalves, Hyatt Hotels Corp.
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.