Brazilian Resort Market Poised for Transformation and Growth in 2012
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Brazilian Resort Market Poised for Transformation and Growth in 2012
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Category: Central and South America - Brazil - Industry economy -
Figures / Studies Trends / Expert's advice
This is a press release selected by our editorial committee and published online for free on 2011-12-09
Jones Lang LaSalle Hotels’ inaugural Resorts in Numbers report forecasts a bright future for Brazilian resort hotels
Jones Lang LaSalle Hotels today released its inaugural, bi-lingual research study, Resorts in Numbers – Brazil 2011, which reveals how Brazil’s rapid pace of economic growth is translating into rising demand for the country’s resorts. During the first half of 2011, occupancy rose 10 percent over the prior year period, signifying the highest growth recorded in Brazil’s resort sector since 2009.
Statistics contained in Resorts in Numbers – Brazil 2011 were compiled by Jones Lang LaSalle Hotels in partnership with industry association Resorts Brasil. The report represents the largest surveyed sample of resorts in Brazil to date and provides performance analysis of properties on both the coast and inland.
“The resort sector has faced many challenges in recent years: the bankruptcy of Brazil’s national airline in 2006, the decline of key European markets in 2009; increased competition from cruise lines and the rising value of the local currency, making international travel more appealing for Brazilian,” said Ricardo Mader, Executive Vice President for Jones Lang LaSalle Hotels in São Paulo. “Now, the sector is poised for real transformation and growth, as economic decentralization and increases in average income enable many Brazilians to stay at a resort for the first time.”
Brazil’s sustained economic growth is also leading to a significant increase in demand for corporate travel to resorts. “A general expansion in business activity and a sharp increase in the pricing of traditional urban hotels are factors causing an increased number of Brazilian associations to hold annual meetings and conventions at resort hotels, providing a considerable lift to the segment. To accommodate this growing demand, we’re seeing existing resorts expanding their meeting space or room count,” added Mader.
Domestic demand is expected to be further boosted through the first quarter of 2012 as Brazil’s currency is forecasted to be approximately 20 percent weaker against the U.S. dollar — encouraging travel within Brazil during this peak vacation period.
During 2010, Brazilian nationals accounted for 88 percent of the sector’s demand, underlining the domestic nature of the resort market. In terms of room stock, just 31 percent of the analyzed resorts’ room count is comprised of internationally branded product, highlighting the opportunity for branded resorts to enter the market and for existing properties to consider affiliation with a major flag.
The low rate of incoming supply in contrast with robust demand will further bolster performance of existing resorts over the next several years. Jones Lang LaSalle Hotels found that, of the 78 resort projects in various stages of development in the country, only 14 encompassing some 3,000 rooms are under construction.
“Resort developers have not yet sprung into action on a large scale and the market is not expected to be oversupplied in the mid-term,” said Executive Vice President Clay Dickinson, who oversees Latin American operations for Jones Lang LaSalle Hotels. “We are truly just at the onset of the tremendous performance improvements that we expect the resort sector to experience in Brazil.”
For more information on Brazil from Jones Lang LaSalle Hotels view a brief video of expert Clay Dickinson on the Jones Lang LaSalle Hotels YouTube Channel: http://www.youtube.com/watch?v=1xUTQrShUSM
Jones Lang LaSalle Hotels’ Resorts in Numbers – Brazil 2011 covers historic performance in the country’s resort market, serves as a benchmarking tool for both domestic and foreign investors and owners, and highlights trends expected for the sector in 2012.
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 225 hotel specialists, operating from 39 offices in 20 countries. The firm's advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company,
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