Latin America’s hotel construction pipeline - Insights
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Latin America’s hotel construction pipeline

Latin America hotel construction pipelineAccording to Lodging Econometrics’ (LE’s) Construction Pipeline Trend Report for Q1 2022, the Latin America Hotel Construction Pipeline stands at 563 projects/92,356 rooms, down 7% by projects and 11% by rooms, year-over-year (YOY).

Projects presently under construction stand at 271 projects/49,145 rooms. Projects scheduled to start construction in the next 12 months stand at 148 projects/22,128 rooms and those in the early planning stage are at 144 projects/21,083 rooms. The early planning stage of the pipeline in Latin America is the only stage with growth, up 44% by projects and 30% by rooms YOY. This stage of the Latin American pipeline has continued to grow since its bottom in Q1 ‘21.

Mexico leads Latin America’s construction pipeline with 216 projects/35,620 rooms. Next is Brazil, standing at 90 projects/15,115 rooms. Peru follows with 32 projects/3,972 rooms, then the Dominican Republic with 22 projects/4,853 rooms, and Columbia with 18 projects/2,782 rooms. Collectively, these five countries account for 68% of the rooms in the total pipeline.

Cities in Latin America with the largest pipelines include Mexico City, Mexico with 25 projects/3,475 rooms; Guadalajara, Mexico with 21 projects/2,662 rooms; Cancun, Mexico with 20 projects/7,653 rooms; Lima, Peru with 20 projects/2,862 rooms; and Sao Paulo, Brazil with 11 projects/2,101 rooms.

Top hotel franchise companies in Latin America’s construction pipeline are Hilton Worldwide with 105 projects/15,760 rooms, Marriott International with 103 projects/16,302 rooms, Accor with 80 projects/10,140 rooms, and InterContinental Hotels Group (IHG) with 58 projects/6,568 rooms. These four companies are responsible for 61% of the projects in the total construction pipeline.

The top brands in the pipeline are Accor’s Ibis brands with 55 projects/6,876 rooms, Hilton’s Hilton Garden Inn with 26 projects/3,467 rooms and Hampton by Hilton with 24 projects/2,924 rooms. These are followed by IHG’s Holiday Inn Express with 13 projects/1,538 rooms and Hyatt’s AMR Collection with 12 projects/4,517 rooms.

New project announcements in Q1 ‘22 were up 40% by projects YOY at 42 projects/5,054 rooms. In the first quarter of 2022 there were 17 new hotels/2,368 rooms that opened throughout Latin America. LE is forecasting another 88 projects/15,215 rooms to open throughout the remaining quarters of 2022 for a total of 105 new hotels, accounting for 17,583 rooms, by year-end 2022. In 2023, LE analysts are forecasting 108 projects/16,587 rooms to open in the Latin America region.

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