LatAm hotel pipeline continues decline: LE

W São Paulo
The W São Paulo in Brazil is slated to open in 2021. The city's pipeline has 17 hotels and 2,704 rooms underway. Photo credit: Marriott International

According to the recent Latin America hotel-construction pipeline trend report from Lodging Econometrics, the total construction pipeline by rooms is in its third year of decline.

At 710 hotel projects and 123,392 rooms, the pipeline is at its lowest number of projects since Q4 2013.

Projects presently under construction stand at 321 hotels with 56,228 rooms. Projects scheduled to start construction in the next 12 months stand at 208 hotels and 35,733 rooms (an all-time high for rooms), and those in the early planning stage are at 181 hotels and 31,431 rooms.

In Q2, Latin America had 56 new hotels with 10,938 rooms open. The LE forecast for the remainder of the year shows another 89 new hotels with 13,294 rooms scheduled to open. In 2020, LE’s forecast for new openings is expected to increase to 161 new hotels with 26,331 rooms and in 2021 rising to 164 new hotels with 24,470 rooms forecast to open.

Top Markets, Top Brands

Mexico leads Latin America’s construction pipeline with all-time high room counts at 203 hotels and 36,188 rooms. Next is Brazil, which stands at 156 hotels and 25,991 rooms. These two countries account for 51 percent of the projects in the total pipeline. Following is Colombia with 46 hotels and 7,267 rooms, then Peru with 43 hotels and 6,055 rooms and, at an all-time high by projects, the Dominican Republic with 35 hotels and 11,053 rooms.

Cities in Latin America with the largest pipelines include Lima with 31 hotels and 4,782 rooms; Mexico City at an all-time high with 28 hotels and 4,849 rooms; Cancun with 19 hotels and 8,947 rooms; São Paulo with 17 hotels and 2,704 rooms; and Cartagena, with 16 hotels and 2,954 rooms. These five cities make up 20 percent of the rooms in the pipeline

Top hotel franchise companies in Latin America’s construction pipeline are Accor with 104 hotels and 13,880 rooms; followed closely by Marriott International with 103 hotels and 16,435 rooms. Next is Hilton at a record high 82 projects with 11,574 rooms and IHG with 54 hotels and 6,432 rooms. These four companies are responsible for 48 percent of the projects in the total hotel-construction pipeline.

The top brands in the pipeline are AccorHotel’s Ibis brands with 67 hotels and 8,420 rooms; Hampton by Hilton with 21 hotels and 2,592 rooms; Hilton Garden Inn with 20 hotels and 2,847 rooms; and IHG’s Holiday Inn Express with 18 hotels and 2,147 rooms. Following these brands are Marriott’s Fairfield Inn with 15 hotels and 2,255 rooms and Courtyard by Marriott with 11 hotels and 1,660 rooms.