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2013 SNAPSHOT
The country presented modest performance in its
macroeconomic indicators during 2013. The forecasted
growth of the national GDP is around 2.5%, while theinflation
rate remained steady (around 6.3% annually).
The limited economic growth, along with a significant
volume of new supply entering the market (over 40 new
hotels representing more than 7,200 rooms) had an impact
on the AOR (average occupancy rate) presenting almost
the same YTD (year to date October) performance as in
2013: over 66% (STR Americas Hotel Review).
ADR in US$ presented a slight drop-o (from US$ 133 YTD
October in 2012 to US$ 129 in 2013). Nonetheless, this does
not reflect the actual ADR increase in local currency, whichrose
by 7%. This situation is explained, mostly, by the local
currency depreciation in Brazil, over 17% throughout 2013.
Despite the slowdown in economic activity, the hotel
market seems to have successfully absorbed the new
supply, with no significant impact on ADR and RevPAR.
Hotel investment opportunities kept on been capitalized,
mostly, by the real estate sector (developers, construction
companies) through the development of hotel products
(midscale, budget and super economic, mainly) financed
through condo hotel structures.
BUSINESS SCENARIOS FOR 2014 AND BEYOND
2014 will finally arrive and we will see the real impact, in
performance terms, of the FIFA World Cup to be held next
year in Brazil. Apart from the specific impact that this
eventwill have in the host cities and in other secondary cities,
the
overall macroeconomic scenario for Brazil remains modest
for next year, with growth forecasted of 2.5% for the
national
GDP and a similar inflation rate (5.8%).
Due to the significant economic growth that Brazil showed
over the last years, hotel development and investment
presented significant growth. Apart from the recently opened
new supply (2012-2013), over US$ 13 billion should be
invested in the hotel sector during the 2013-2016 period.
This
investment would represent more than 400 new hotels and
more than 70,500 new rooms in the Brazilian market.
Apart from the development of new supply in key gateway
cities with an outdated hotel supply, such as Belo Horizonte
(40 new hotels) or Rio de Janeiro (more than 20 new hotels),
secondary and tertiary cities are playing a significant
role,
being targeted for the development of new hotel supply,
mostly aiming at capturing the economy segment of the
market.
As well as over the last years, most of the new hotel supply
will be developed and financed through condo hotel
property structures and will be managed by internationalor
national hotel chains. Also, most of these new properties
will be franchised and will result in the (delayed) arrival
of
key new players: multi-chain operators managing dierent
franchises for dierent owners.
The upcoming new supply will represent a challenge for the
current players in each market, and that is why we expect
to keep seeing retrofit and updates regarding infrastructure
and services. Hotels will have to keep up with the new
competitive scenarios: more rooms, more branded, and more
professionally managed.
BRAZIL by Mariano Carrizoi
CO
UNTRYREPORTS
AMERICAS
66 HOTEL Yearbook 2014 annual edition
https://www.hotel-yearbook.com/author/148002381.htmlhttps://www.hotel-yearbook.com/author/148002381.htmlhttps://www.hotel-yearbook.com/author/148002381.htmlhttps://www.hotel-yearbook.com/author/148002381.htmlhttps://www.hotel-yearbook.com/author/148002381.html
