Why hotel investment in Peru may reach $1.2 billion by 2018

Hotel Association of Peru (SHP) Chairman Jose Koechlin recently announced that Peruvian hotel investment is expected to reach a total $1.2 billion between now and 2018.

At the presentation of the hotel investment report by the Hotel & Tourism Advisors, Koechlin announced the investment into a total of 102 projects, Peru This Week is reporting. The projects will add 11 hotels and 7,676 rooms to the country's stock in three- to five-star properties.  

This investment marks a significant increase compared to the period between 2010-2014 when investment amounted to $550.1 million, according to the Andina news agency. It also aligns with this summer's goals, when SHP General Manager Hotel Tibisay Monsalve predicted that investment projects in Peru  would reach $161 million this year. At the time, 11 new hotels were planned for 2015 with a total capacity of 1,242 rooms.

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Earlier this year at the 2015 South American Hotel & Tourism Investment Conference, Peru's Ministry of Foreign Trade and Tourism (Mincetur) announced 33 hotel projects, which demand investments worth $241 million, to 200 potential investors.

Tourism Deputy Minister Maria del Carmen Reparaz said that the series of initiatives went through "filters" to meet requirements demanded by this forum. "Although these are private initiatives, they rely on Mincetur's support because these are complete plans…They count on all corresponding guarantees," she told Andina in September.

According to Reparaz, these investment plans only comprise high-level hotel infrastructure development. "Each project will demand an average investment worth $7.3 million and will be executed in 15 regions,” she said.

Over the summer, SHP Consultant Gianfranco Aliaga pointed out that the estimated growth for 2015 was due, among other things, to the fact that hotel chains have underpinned corporate clients—those who undertake business visits to the country.

"We are talking about those businessmen interested in investing, who also require a standardized and adequate accommodation for their stay," he stated after saying hotel chains have decided to settle in places where there are not acceptable hotel accommodations.

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