Speakers at the South American Hotel Investment Conference delved into the pros and cons of working with hotel brands in the region.
GUAYAQUIL, Ecuador—International brand growth across South America is taking off, thanks to local partnerships and specific strategies, speakers said during Day Two of the South American Hotel Investment Conference.
Development executives from the major global brands spoke Monday and Tuesday about their strategies particularly in Brazil, Colombia, Argentina and Peru, all pointing to the growing cohort of middle-class travelers looking for select-service hotel options.
Local economic and political issues factor in to brand growth success, as do factors like infrastructure and tax incentives, the latter of which has done a lot to fuel hotel development in Colombia.
Keynote speaker and Hilton Worldwide Holdings President and CEO Chris Nassetta summed up what’s required to grow a branded footprint in South America.
“It takes patience and discipline,” he said. “The branded hotel space in Latin America overall is evolving nicely over the last decade. It’s picking up momentum. This is a big place with a lot of diversity, with lots of issues—regulatory and otherwise—to manage.”
Executives from InterContinental Hotels Group, Carlson Rezidor Hotel Group, AccorHotels and Hyatt Hotels Corporation also addressed the importance South America to their respective development plans, especially for brands in the select-service segments. All spoke in particular about the importance of partnerships with local owner-operators and experienced third-party management companies.
In 2016, SAHIC will hold two events, SAHIC 2017 in Buenos Aires, Argentina; and a new SAHIC event in Havana, Cuba.
Quote of the day
“We have hospitality. We have food. We have culture. We have to have infrastructure.”
—Juan Corvinos Solans, managing director, development, Mexico, South America and the Caribbean, Hilton Worldwide Holdings, on the “The Pacific Alliance” panel, talking about how important infrastructure is to growing travel and tourism across Chile, Colombia, Mexico and Peru.
Stat of the day
—Luis Miguel Diaz Sanchez, vice minister of tourism of Cuba, said the country’s plan is to add “no less than 4,500 hotel rooms per year.”
Slide of the day
This slide shows key performance indicators in South America’s main cities, according to HNN parent company STR. Buenos Aires led the region in average daily rate and revenue per available room year to date through August.
Tweet of the day