LatAm: Performance mostly down, development up
 
LatAm: Performance mostly down, development up
07 OCTOBER 2016 7:34 AM

Here are some key points on hotel performance and development in the Americas from the “Beyond the states: A Caribbean, Mexico and Latin America overview” data dash session at the Hotel Data Conference.

NASHVILLE, Tennessee—Hotels in the Caribbean, Mexico and Latin America have hit some bumps, but experts still predict a good year for the regions as far as performance and development.

Fatima Thompson, associate director of business development, hotels, at STR, gave a presentation titled “Beyond the states: A Caribbean, Mexico and Latin America overview” at this year’s Hotel Data Conference

Here are the highlights of that presentation.

Caribbean
As of July 2016, there are 1,928 hotels with 240,407 rooms in the Caribbean, according to data collected by STR (parent company of HNN). Occupancy in the region dropped 3.7% to 70% from the year before, while average daily rates fell 2.6% to $235.99 and revenue per available room fell 6.3% to $165.72.

Fears surrounding the Zika virus are believed to have contributed to some of that decline. But Frank Comito, CEO and director general of the Caribbean Hotel and Tourism Association, said it’s hard to tell how much of an impact Zika has had. Other factors, he said, include the sharing economy, Brexit and currency exchanges.

Performance might be down a bit, but tourists are still visiting the Caribbean. “Visitor arrivals are probably going to set a record this year,” Comito said. “We will probably have just under 30 million visitor arrivals.”

The three largest projects in the Caribbean active pipeline are the 850-room Palladium Hotel Grand Jamaica Resort & Spa in Montego Bay, Jamaica, which is in the final planning stage; the 470-room Secrets Cap Cana in the Dominican Republic, under construction; and the 450-room Sam Lords Castle Barbados, A Wyndham Grand Resort, also in the construction stage.

“In the Caribbean region, looking at that July pipeline, we currently have 21 projects in the in-construction phase, 16 projects in the final planning phase, 14 projects in the planning stage, for a total of 51 projects representing (9,600 rooms in the active pipeline,)” Thompson said.

Central and South America
In Central America, 32 projects representing 4,327 rooms are in the active pipeline, according to July 2016 STR data. The three largest projects are the 379-room Paradisus Papagayo Bay in Costa Rica; The Resort at Mahogany Bay Village, Curio – A Collection by Hilton – in San Pedro, Belize, with 305 rooms; and the 220-room Ritz-Carlton Panama City in Panama.

At the same time, South America has 380 projects representing 60,897 rooms in the active pipeline, according to STR data. The three largest projects are the 576-room Bristol Easy Hotel Campos Centros in Brazil; the 472-room Gran Melia Rio De Janeiro in Brazil; and the 373-room Grand Hyatt Bogota in Columbia.

Mexico
Mexico has 3,533 hotels with 363,855 rooms, according to July 2015 year-to-date data collected by STR. Occupancy dropped 1% to 64%; ADR went up 15.8% to 2,210.45 Mexican Pesos ($114.73); and RevPAR increased 14.6% to 1,421.97 Mexican Pesos ($73.81.)

Supply and demand in the country are stable, the data showed, and ADR and RevPAR growth has remained positive.

The 123 projects in Mexico’s hotel development pipeline represent 18,817 rooms. The three largest projects are the 534-room Dreams Playa Mujeres Golf & Spa Resort, in construction; and the 1,800-room Hard Rock Hotel Riviera Cancun and 600-room Hard Rock Los Cabos, both in final planning.

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