The region’s construction
pipeline has increased double digits year over year and is poised for even more
growth, according to Lodging Econometrics.
INTERNATIONAL
REPORT — There is a surge in hotel development activity in the Latin American
region, according to Lodging Econometrics (LE) data. The
region’s construction pipeline has swelled to 612 projects and 97,597 rooms,
which projects an 11% increase in projects and a 10% increase in rooms year
over year.\
Looking ahead, LE projects a steady increase in new hotel openings with a forecast for 2025 of 111 new hotels and 18,816 rooms. There is an expectation of even more hotels opening in 2026, with LE projecting 131 new hotels and 18,293 rooms.
Through
the first half of 2024, Latin America had 253 projects and 44,319 rooms
currently under construction, reflecting an 11% year-over-year increase in
projects and a 15% increase in rooms. Projects scheduled to start construction
in the next 12 months stand at 187 projects and 29,476 rooms, up 18% by
projects and 17% by rooms compared to the previous year. The early planning
stage also showed growth, with 172 projects and 23,802 rooms, a 3%
year-over-year increase.
The
region is also experiencing a record-breaking surge in renovation and
conversion activities, with 186 projects and 29,500 rooms, an eye-popping 30%
increase in projects and an 11% increase in rooms year over year. According to
LE, this trend “indicates a strong commitment to upgrading and repurposing
existing properties to meet modern standards and changing market demands.”
There
was also a significant 32% year-over-year increase in new project
announcements, with 62 projects and 8,740 rooms added to Latin America’s
pipeline. This influx of new projects bodes well for the sector’s continued
growth and diversity.
The
first half of 2024 featured 40 new hotels and 8,730 rooms and LE forecasts an
additional 60 new hotels and 8,825 rooms to open for the remainder of the year.
That would total 100 new hotels with 17,555 rooms for all of 2024.
PREVIOUS LODGING ECONOMETRIC REPORTS
In
August, we talked about how the U.S. construction pipeline is sitting at an
all-time high.
In
early July, we talked about the hottest development markets in Latin America.
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.