Hotel conversions continue to have real momentum in the Caribbean and Latin America (CALA) region and in recent years have become an important growth driver for Marriott International. Hoteliers and investors are leveraging the efficiencies and advantages of renovating and rebranding existing properties, further expanding the breadth of Marriott’s portfolio, consisting of 31 global brands.
The Backend of the Latin America Hotel Construction Pipeline grows and renovations and brand conversions tick upward
According to Lodging Econometrics’ (LE’s) Construction Pipeline Trend Report for Q1 2023, the hotel construction pipeline in Latin America, quarter-over-quarter, has increased 2% by projects and 3% by rooms. The Latin America hotel construction pipeline, at the close of Q1 2023, stands at 546 projects/90,139 rooms, however, down slightly 3% by projects and 2% by rooms year-over-year (YOY).
In the recently released Latin America Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that at the close of Q4 2022, the total construction pipeline stands at 536 projects/87,827 rooms.
Latin America Construction Pipeline Trend Report, the region’s total hotel construction pipeline has 555 projects/90,496 rooms at Q2 2022.
Among key hotel markets in Latin America, São Paulo led in recovery of gross operating profit per available room (GOPPAR).
Currently at the lowest number of projects in the Latin America construction pipeline since the first quarter of 2012.
Latin America’s popular leisure markets, especially beach destinations, have continued to post hotel occupancy levels above 40%.