Hotel Investors Increase Focus on Latin America for Counter-Cyclical Investment Opportunities

Jones Lang LaSalle Hotels reported that an increasing number of hotel investors are turning to Latin America for counter-cyclical investment opportunities. Hotel companies are researching market entrance strategies, conducting acquisition and new development due diligence, and analyzing future hotel demand in the 2014 FIFA Soccer World Cup candidate cities in Brazil.

Brazil’s still strong domestic demand is boosting hotel fundamentals and creating hotel investment and development opportunities. Some Brazilian markets have posted double-digit RevPAR growth thus far in 2008.

Colombia and Peru are also increasingly on the radar of international hotel investors. Colombia could be a standout thanks to its newfound political stability and increased demand fundamentals in cities like Medellin and Bogota. Colombia has already begun to emerge as a stronger market and some regional players have been successful in rolling out developments in Bogota, Cali and Santa Marta.

The increase in Latin American hotel investment conferences indicate the growing level of interest in the hotel sector in Latin America: Real Estate Investment World Latin America was held in Miami in September, the first South America Hotel and Tourism Investment Conference took place in Buenos Aires later in the month, the ULI Fall Meeting and Urban Land Expo occurred late in October in Miami Beach, and the Hotels & Money Latin America conference in Miami this week.

Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide both the depth and breadth of advice required by hotel investors and hotel companies, through a robust and integrated local network. The global team comprises over 270 hotel specialists, operating from 31 offices in 18 countries.

The firm’s advice is supported by a dedicated global research team, which produced over 45 publications in 2007 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum, from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs.

Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services.