Brazil Hotel Rents Jump More Than 10%

SAO PAULO, BRAZIL-A report about the Brazil hotel industry shows that in 2009, the country’s lodging companies posted an average daily rate growth of 10.4% for the year, boosted by the country’s quick economic rebound in the second half of the year. Following this turnaround, the country is one of the rising stars of the investment world, and has about 153 hotel projects in construction or advanced planning.

The Jones Lang LaSalle Hotels report, “Lodging Industry in Numbers – Brazil 2010,” shows that last year did produce a few hospitality hiccups, including occupancy rates softened by 1.4% and gross operational profit down by 1.1% as firms reduced the number of meetings, events and banquets. However, revenue per available room (RevPAR) grew to $63.76 in 2009, the highest in Brazil’s history, according to JLL EVP Ricardo Mader.

This year has shown even further growth, he said in a statement. “Across the 15 hotels we asset manage across Brazil, we have already been observing double-digit RevPAR growth thus far in 2010,” Mader said.

Foreign investors are very interested in the country, as most of the country’s hotels are unaffiliated with a brand. The new projects include more than 24,000 rooms that will be affiliated with the main hotel chains in Brazil, said Manuela Gorni, SVP, in a statement. “We expect a new hotel development and investment cycle to gain traction in Brazil, as the country prepares for the FIFA Soccer World Cup to be hosted in 12 cities across the country in 2014 and the summer Olympic games in Rio de Janeiro in 2016,” Gorni said. Major investors such as Sam Zell have been touting Brazil as a top pick because of its improved middle class and low government hurdles.