At the end of 2008, the total construction pipeline for Latin America was 616 projects/107,433 rooms, according to research from Lodging Econometrics –a decline of 10 percent by projects and 16 percent by rooms from the cyclical peak in the first quarter of 2008.
While the region’s pipeline is trending down, to date the retreat is not as steep as it is in other world regions. Developers still consider it an attractive area for lodging development, particularly if they are partnered with a major hotel franchise company.
The region’s pipeline is front-end loaded, with 55 percent of total projects already under construction. Having secured financing before the economic slowdown and global credit crisis impeded lending, these projects will most likely enter as new supply, with the rate of new openings ramping up through 2010.
Brazil accounts for 31 percent of the total pipeline with 193 projects/32,819 rooms, followed by Mexico with 142 projects/24,569 rooms. Argentina, Dominican Republic and Colombia are also very active, but at a less heated level.
Developer sentiment remains subdued in the wake of the world’s economic and banking crises. At 38 projects/7,156 rooms, construction starts are down 61 percent by projects and 57 percent by rooms.
With lending largely unavailable, many projects already in the pipeline are now stalling in scheduled starts and early planning stages and cannot migrate forward. Cancellation and postponement of projects already in the pipeline –42 projects/7,383 rooms- are at a much slower rate than the previous two quarters when there appeared to be a mass removal of projects at the onset of the economic crisis.
New project announcements into the pipeline, at 64 projects/9,176 rooms, are half of what they were one year ago, again due to the challenging economic environment. As in other world regions, trends for these metrics will likely continue until the world’s economic and banking situations gain footing again.
LIAT on Friday responded to concerns raised about its ownership, making it clear that Texas financier Allen Stanford has no stake in the Caribbean airline.
LIAT on Friday responded to concerns raised about its ownership, making it clear that Texas financier Allen Stanford has no stake in the Caribbean airline.
Amadeus is launching a report commissioned from the Economist Intelligence Unit, into the effect of the economic downturn on executives’ choice of hotel. Titled, “The Austere traveler - the effect of corporate cutbacks on hotels”, the report finds that executives will make fewer, shorter and cheaper business trips in 2009 and switch from luxury extras in favor of basic efficiency and good service.
Amadeus is launching a report commissioned from the Economist Intelligence Unit, into the effect of the economic downturn on executives’ choice of hotel. Titled, “The Austere traveler - the effect of corporate cutbacks on hotels”, the report finds that executives will make fewer, shorter and cheaper business trips in 2009 and switch from luxury extras in favor of basic efficiency and good service.
Amadeus is launching a report commissioned from the Economist Intelligence Unit, into the effect of the economic downturn on executives’ choice of hotel. Titled, “The Austere traveler - the effect of corporate cutbacks on hotels”, the report finds that executives will make fewer, shorter and cheaper business trips in 2009 and switch from luxury extras in favor of basic efficiency and good service.