The latest data from Lodging Econometrics shows the Dominican Republic
city leads in both projects and room count.
LATIN AMERICA — The Punta Cana market in the Dominican Republic leads the Latin
American hotel construction pipeline, according to the latest data from Lodging
Econometrics.
Punta Cana has 24 projects and 7,993 rooms currently in
the pipeline. The city of Guadalajara in Mexico is second with 22 projects and
2,741 rooms, while Mexico City is third with 21 projects and 2,353 rooms. Two
other markets in Mexico, Cancun (16 projects and 6,381 rooms) and Monterrey (13
projects and 2,036 rooms) round out the top five.
LE analysts said Punta Cana taking the
top spot over the other Mexican markets underscores the allure of Caribbean
destinations for large-scale hospitality investments. Analysts said the stark
contrast in room counts between Punta Cana and Cancun suggests a focus on
expansive resort projects in tourist hotspots, while urban centers are trending
towards more projects but smaller developments.
Cancun leads in projects currently under construction
with 9 projects and 4,463 rooms, while Lima, Peru, is second with 7 projects
and 1,173 rooms. Three markets in Mexico round out the top five (Mexico City
with 7 projects and 731 rooms; Los Cabos with 6 projects and 742 rooms; and
Monterrey with 5 projects and 1,027 rooms.
LE analysts said this category gives insight into more
immediate market growth, with Cancun in both project and room numbers. They said the varying
room-to-project ratios across the top five indicate diverse development
strategies, from large-scale resorts in Cancun to more boutique offerings in
urban areas like Mexico City.
Punta Cana also leads in future development hot spots
with 20 projects and 4,104 rooms either slated to begin construction within the next year
or in early planning stages. Other markets in Mexico round out the top five:
Guadalajara, Mexico City, Riviera Maya and Monterrey.
Through June 2024, 145 projects and 28,256 rooms were
either in a stage of renovation or brand conversion in the Latin American
region. Mexico City was first, with San Jose, Monterrey, Cancun, and San Juan
rounding out the top five. Those five cities account for nearly 20% of the
projects and rooms under renovation or conversion.
Latin America is expected to open 101 hotels and 18,381
rooms to its supply through 2024. Cities with the most hotels forecast to open
in 2024 include Santo Domingo, Mexico City, Sao Paulo, Mazatlán and Lima.
PREVIOUS LODGING ECONOMETRIC REPORTS
In late June, we talked about why Dallas is still leading
the U.S. construction pipeline.
In mid-June, we discussed that a huge portion of Europe’s
pipeline is under construction.
In late May, we discussed the pipeline in APEC (Asia
Pacific excluding China).
In mid-May, we discussed the booming pipeline in Latin
America.
In mid-May, we discussed the hotel construction pipeline
in Canada.