Jones Lang LaSalle Hotels : Hotel Investment Opportunities Ripen in Buenos Aires (Argentine)
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Jones Lang LaSalle Hotels : Hotel Investment Opportunities Ripen in Buenos Aires (Argentine)
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Catégorie : Amérique Centrale et du Sud - Argentine - Économie du secteur -
Chiffres et études
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Double-digit RevPAR gain posted in 2010, poised for further growth in 2011
Jones Lang LaSalle Hotels reported today that the upswing in economic fundamentals in Buenos Aires has spurred numerous hotel investment opportunities. According to its report, Hotel Intelligence Buenos Aires, both domestic and foreign investors are looking to become active in this vital market.
Argentina’s economic growth is resurging. While a challenging business environment and uncertain outlook persists, the city’s reputation as the Paris of South America, relative accessibility and currently attractive exchange rates help Buenos Aires retain its status as one of South America’s preeminent tourist destinations. Buenos Aires is also Argentina’s principal business, commercial, cultural, and financial hub. Visitation trends and hotel fundamentals rebounded strongly in 2010 and investors continue to seek investments across various hotel sectors and locations in and around the city.
“Notwithstanding potential political and economic headwinds, strong demand growth is improving operating performance, thereby creating some interesting investment opportunities for investors who may be comfortable with an elevated level of uncertainty,” said Clay Dickinson, Executive Vice President, Jones Lang LaSalle Hotels.
With hotel fundamentals on the uptick, investors are again evaluating new hotel developments and conversion opportunities on a selective basis, weighing them against the risks and challenges of investing under relatively mercurial market conditions.
“Compared to other capital cities in South America, Buenos Aires has a more established base of business, leisure and group demand and as such, will increasingly be a favored hotel investment destination as economic prospects continue to improve. Overall, the development environment in Buenos Aires is characterized by attractive land values and moderate construction costs,” said Ricardo Mader, Director, Jones Lang LaSalle Hotels.
While the market is well-served in terms of luxury properties, it has limited representation of upscale branded select service hotels. As evidenced by the robust recent entrance of Accor’s Novotel and Ibis hotels, this presents a potential area of investment opportunity.
“Recoleta and Puerto Madero are among the most sought-after districts for hotel development, while Retiro/Plaza San Martin, which strategically bridges the two, is ripe for renewal,” Juan Paredes, Vice President, Jones Lang LaSalle Hotels. “In particular, Puerto Madero is increasingly being built up and is home to large commercial real estate developments.”
One of the key development opportunities is for investors to review the feasibility of developing branded midscale or budget properties along the main access routes outside of the city. There is a limited amount of quality lodging stock just outside of the city and hotels in this type of location should provide the potential for strong income growth over the medium term.
While the city’s hotel transaction market has historically not been very liquid, there may be an opportunity to acquire one of the city’s branded upper upscale hotels in the future. “A perennially attractive destination and improving fundamentals could make both domestic and foreign investors making investments in this market look smart indeed,” Paredes said.
Over the past decade, the country’s tourism sector has been bolstered by the depreciation of the Argentinean Peso, which contributed to Argentina becoming a price competitive and attractive international tourism destination. Following a slight decline in 2009, passenger volume at Buenos Aires Ministro Pistarini International Airport increased by 11% in 2010 and is expected to rise further this year.
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 210 hotel specialists, operating from 37 offices in 19 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, Jones Lang LaSalle (NYSE: JLL).
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