According to the STR Global Construction Pipeline Report published in July 2014, Central and South America's combined hotel growth pipeline includes 384 hotels with a total of 62,958 new rooms. doha property
Projects in construction, final planning, and planning stages are included in the total under contract results, but projects in the unconfirmed stage are not.
Three chain size divisions accounted for more than 20.0 percent of rooms under contract: upscale (23.3 percent with 14,696 rooms), midscale (22.3 percent with 14,022 rooms), and upper midscale (22.3 percent with 14,022 rooms) (22.2 percent with 13,970 rooms).
With 7,289 rooms under construction, the luxury category accounted for the highest percentage of rooms under construction (29.8%). The midscale segment (19.8% with 4,841 rooms) and the upper midscale segment (15.0%) each accounted for more than 15.0 percent of rooms under construction (19.7 percent with 4,820 rooms).
There are 400 hotels under construction in Latin America.
According to the STR Global Construction Pipeline Report from June 2014, the Central and South American hotel growth pipeline includes 400 hotels with a total capacity of 65,479 rooms.
Projects in the in-construction, final design, and planning stages are included in the total under contract results, but projects in the unconfirmed stage are not.
Brazil, with 44,100 rooms under contract, was the country in the area with the most rooms under contract. Colombia (4,893 rooms), Panama (3,631 rooms), Argentina (2,771 rooms), and Chile each registered having more than 2,000 rooms under contract (2,437 rooms).
Marriott plans to double its Latin American hotel portfolio by 2017.
Marriott International Inc. (NYSE: MAR) expects to double its hotel portfolio in South America by 2017 in response to rising demand. Marriott will add 12 hotels to its current five in Brazil and expand its presence in Colombia from two to seven.
In Cartagena, Colombia, Marriott President and Chief Executive Officer Arne Sorenson made the announcement. Marriott is the world's largest publicly traded hotel company.
Marriott's Fairfield Inn & Suites brand will be the highlight of the expansion.
Sorenesen said in a news release from Marriott headquarters in Bethesda, MD, that he expects his company's expected expansions to increase jobs at Marriott hotels to 27,000 by the end of 2017, up from 13,000 now.
Hotel rooms are in short supply in Brazil, in particular. The 2016 Summer Olympics will be held in Rio de Janeiro, Brazil's second-largest city. Rio de Janeiro is also home to the Maracana soccer stadium, which will host the 2014 World Cup closing ceremony.
Marriott has a unique opportunity to develop in Latin America, the Caribbean, and Asia, according to Sorensen. He sees a rising middle class in those countries whose incomes would enable them to travel more for leisure as well as business in the near future. He sees growth potential in residential, office, and retail properties as well.
In the Caribbean and Latin America, Marriott has 35 hotels signed and under construction. The Ritz-Carlton, Aruba, The Ritz-Carlton, Panama City (Panama), JW Marriott Cusco (Peru), Marriott Hotel Port-au-Prince (Haiti), and Renaissance Santiago are among them (Chile).
Marriott expects its portfolio in the area to grow to over 140 hotels and 30,000 rooms by 2017, with more opening or in the pipeline.
Marriott International currently operates 69 hotels in 25 Caribbean and Latin American countries. In the country, nine of Marriott's 18 brands are currently represented.
The Ritz-Carlton and JW Marriott are in the luxury category; Marriott Hotels & Resorts is in the upscale category; Renaissance Hotels and Autograph Collection are in the lifestyle category; Courtyard by Marriott is in the upper moderate category; Marriott Executive Apartments and Residence Inn by Marriott are in the extended stay category; and Fairfield by Marriott is in the budget category (moderate).
Since lenders have been hesitant to provide hospitality financing until recently, Brazil has been slow to build new hotel properties. Commercial developers have often avoided the hotel market, opting instead to build other types of real estate on available land.
Marriott's diverse portfolio of top brands is on display in the area this year, from the first Ritz-Carlton Reserve in the Americas at Dorado Beach, Puerto Rico, to the JW Marriott in Cusco, Peru, and the Courtyard by Marriott at Mexico City Airport.
Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT), the owner of the upscale St. Regis and W brands, previously announced plans to merge its North American and Latin American operations in order to streamline its global operations.