The
latest data from Lodging Econometrics shows that project and room counts are up
substantially year-over-year for Latin America.
LATIN AMERICA — Through the
first quarter of 2024, the hotel construction pipeline in Latin America has 604 projects
and 100,990 rooms, with projects up 11% year-over-year and rooms up 12%, according to Lodging Econometrics data.
Through Q1,
Latin America had 249 projects (up 10% YOY) and 47,393 rooms (up 18%) in the
new construction stage, while projects scheduled to start in the next 12 months
stood at 189 projects (up 18% YOY) and 28,740 rooms (up 11%). Projects in the
early planning stages stood at 166 (up 4%) and 24,857 rooms (up 3%).
“Today’s
full-service construction pipeline increases are being driven by ‘better than
most’ operating performance during the pandemic,” said Bruce Ford, senior vice president and
director of global business development for Lodging Econometrics.
“Luxury/all-inclusive style resorts continue to grow in popularity, especially
as they are a closer and more convenient destination for American tourism.
Central and South American markets remain second in the world for full-service
development.”
The top
segment for Latin America was upscale, with 129 projects and 18,314 rooms,
while luxury set new records with 106 projects and 22,051 rooms. The upper
upscale segment stood at 103 projects and 21,403 rooms, slightly declining from
its peak in the fourth quarter of 2023.
Renovation
and conversion activity in Latin America remained robust with 146 projects (up
13% YOY) and 28,191 rooms (up 33%) and the upper midscale segment leading
activity.
Through the
first quarter, 20 new hotels and 3,330 rooms opened in Latin America, while new
project announcements also grew substantially, with 23 more projects added to
the pipeline.
LE forecasts
81 new hotels and 15,051 rooms to open through the rest of this year. Analysts
for LE anticipate 108 new hotels and 18,744 rooms to open in 2025.
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LODGING ECONOMETRIC REPORTS
Last week,
we discussed the hotel construction pipeline in Canada.
Earlier in
May, we discussed why the U.S. hotel construction pipeline is surging.
In March, we
talked about the construction pipeline in Europe.