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New industry report projects bright outlook for Brazil's hotel sector

Brazil's urban and condo hotels register positive revenue per available room growth of 1.4% in 2014 (JLL). Number of hotel rooms across Brazil increases by 3.1% (JLL). Ritz-G5 present latest hotel development projects, both to be managed by global group Accor.

With the release of Jones Lang LaSalle‘s (JLL) latest ‘Lodging Industry in Numbers, Brazil 2015’ annual publication, it is clear that despite the challenges that the Brazilian economy is currently facing, the nation’s hospitality market has registered another year of positive results.

The publication, which surveys 460 Brazilian hotels, provides an excellent insight into Brazilian hospitality market changes during the previous year and this year has revealed that Brazil’s hotel industry continues to go from strength to strength.

Year-on-year data reveals that for the tenth year in a row, Brazil’s urban and condo hotels posted positive RevPAR (Revenue per Available Room) growth of 1.4% for 2014.In terms of hotel supply, in 2014, there was also a 3.1% increase in the number of rooms across the country, boosting the supply in Brazil. Alongside this, the rise in branded hotel rooms, of both national and international hotels, was even more significant, growing by 7.9% in 2014.

With regard to the top hotel brands ranking in Brazil, once again the report has ranked Accor at the very top for 2015, a position maintained by the global group over the last few years. At present, in Brazil, Accor has 36,636 hotel rooms under management across 219 hotels, marking them out as the brand that has the largest number of hotels and rooms in the country.

Thanks to the demand for good quality hotel brands and the top ranking of Accor in the country, award winning Brazilian developer Ritz-G5 has launched two hotel development projects that extend the brand’s reach still further. Four-star hotels the Mercure Natal and the Piramide Natal will both be managed by Accor upon opening and Ritz-G5’s CEO, Luiz Fernandes, comments,

“We are thrilled to be involved in Brazil’s affluent hotel sector at a time of such growth and potential. Over the next 12 months, the international gaze will be firmly on Brazil, especially in light of the forthcoming Olympic Games, with many tourists visiting the country for the first time. It is essential that the hospitality industry flourishes at this time, laying the foundations for a bright future.

“The demand for hotel rooms is rising throughout the country, especially those from a recognisable brand, and here at Ritz-G5 we couldn’t be more proud to be working alongside the world’s leading hotel operator, Accor.”

Another positive piece of news highlighted in the JLL report is that in 2014 Brazil saw the highest level of investment transaction volume in the country’s history, with the three major investment transactions all involving private equity funds: the Quantum Fund, the GTIS Fund and the HSI Fund.These recent transactions not only demonstrate that Brazil continues to attract institutional capital given the right investment opportunities, but are also a testimony to the growth potential in the country’s hospitality industry.

Looking ahead, JLL forecasts that the expected spark to the country’s economic recovery, and the staging of the Olympic Games in Rio de Janeiro, will bring greater prospects for hotel performance in 2016.One project hoping to continue the current success of Brazil’s hotel industry is the Mercure Natal, a contemporary 252-suite, 4-star hotel located in the upmarket district of Ponte Negra.

Currently under construction with a grand opening set for 2017, this development occupies the last available plot on the prestigious Via Costeira and will offer excellent amenities. These will include a business centre, private swimming pool, 24-hour concierge and underground parking. Residents of the hotel will enjoy stunning direct views towards the Atlantic Ocean and a Brazilian landmark, the Morro do Careca (Bald Man’s Hill).

The second of Ritz-G5’s hotel development projects is the Piramide Natal hotel. Sitting directly on the doorstep of the Atlantic Ocean this 4 star hotel has 315 guestrooms, a water park, five swimming pools with a swim-up bar, a rooftop terrace, a fitness centre and spa tub, two restaurants, 24hr concierge and a business centre with a capacity for 2,500 seats. Piramide Natal hotel is currently under refurbishment (following Ritz-G5 acquisition in 2014) and is set to open its doors in January 2016.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.