An annual research study on the Brazilian hotel market has shown ADR growth of 10.4 percent and the highest RevPar in the country’s history during the second half of 2009, according to Jones Lang LaSalle Hotels. Overall, the gross operational profit (GOP) of the properties in the firm’s survey sample declined by 1.1 percentage points last year as companies reduced the number of meeting and events. But the good news is that Brazil’s recession was short-lived, and the economy is again growing quickly.
The survey also shows that 93 percent of hotels in the country are unaffiliated with an international or domestic brand. However, the proportion of branded hotels is on the rise as the market continues to be evaluated by foreign investors. There are currently 153 hotel projects in construction or in an advanced stage of planning that will be affiliated with the main hotel chains present in Brazil. “These development projects encompass 24,147 rooms and are concentrated in the economy and mid-scale segments,” says Manuela Gorni, senior vice president for Jones Lang LaSalle Hotels in Sao Paulo.
Significant growth in the hotel market is expected to continue, thanks to the FIFA Soccer World Cup in 2014 and the Summer Olympics in 2016.
