PORTSMOUTH, N.H. — Latin America’s total construction pipeline stands at 671 projects/116,731 rooms, down seven per cent by projects and 11 per cent by rooms, year-over-year (YOY), according to Lodging Econometrics’ Q3 ’20 Latin America Hotel Construction Pipeline Trend Report.
Projects presently under construction stand at 344 projects/61,159 rooms, up three per cent by projects and one per cent by rooms, YOY. Projects scheduled to start construction in the next 12 months are at 186 projects/34,551 rooms, while projects in the early planning stage have experienced the sharpest decline, down 23 per cent by projects and 40 per cent by rooms YOY, settling in at 141 projects/21,021 rooms at Q3 close.
Through the third quarter of 2020, 45 new hotels/8,608 rooms opened in Latin America. There were 29 new project announcements, a cyclical low project count for the region, accounting for 4,557 rooms. Construction starts are also the lowest they’ve been in this real-estate cycle, with Latin America only beginning 21 projects (3,667 rooms).
Hotel franchise companies with the largest construction pipelines in Latin America are Marriott International with 115 projects/19,799 rooms, AccorHotels with 99 projects/12,936 rooms, Hilton Worldwide at a record high 97 projects/13,802 rooms and InterContinental Hotels Group (IHG) with 57 projects/6,935 rooms. These four companies account for 55 per cent of the projects in the total Latin America construction pipeline.
*COVID-19 (Coronavirus) has had an unprecedented impact on the world and the hospitality industry. LE’s market intelligence department has and will continue to gather global hotel intelligence on the supply side of the lodging industry and make that information available to our subscribers. It is still early to predict the full impact the pandemic will have on the lodging industry. We will have more information to report in the coming months.