This is one of the main conclusions of the Latin American construction project portfolio trends report for the second quarter of 2024 prepared by Lodging Econometrics.
Latin America has a portfolio of 612 hotel projects under construction in the second quarter of the year, representing a total of 97,597 rooms and an increase of 11% in projects and 10% in rooms compared to the same period last year.
This is one of the key findings of the Q2 2024 Latin America Construction Pipeline Trends Report by Lodging Econometrics (LE), which indicates a positive growth trajectory for the region’s hotel sector, with steady growth in new hotel openings expected through 2026.
At the end of the second quarter, Latin America has 253 projects with 44,319 rooms under construction, reflecting an 11% year-over-year increase in projects and a 15% increase in rooms.
In addition, the number of projects scheduled to begin construction in the next 12 months amounts to 187, with 29,476 rooms. These figures represent an 18% increase in projects and a 17% increase in rooms year-on-year.
Meanwhile, projects in the early planning stage increased by 3% year-on-year to 172 projects and 23,802 rooms at the end of the quarter.
MEXICO IN THE LEAD
Among the countries with the largest number of projects in their portfolio at the end of the second quarter were Mexico with 226 projects and 33,599 rooms, followed by Brazil with 93 projects and 13,911 rooms.
These two countries represent 52% of the projects and 49% of the rooms in the total portfolio. The Dominican Republic follows with a record high of 51 projects and 12,695 rooms, followed by Colombia with 27 projects and 3,671 rooms.
Among the major Latin American cities with the largest portfolios are Mexico City with 22 projects and 2,467 rooms, Georgetown with 15 projects and 2,089 rooms, Sao Paulo with 12 projects and 2,559 rooms, Lima with 12 projects and 1,914 rooms and Riviera Maya with 12 projects and 1,421 rooms.
New projects announced in the Latin America pipeline during the second quarter increased 32% year-on-year to 62 projects and 8,740 rooms.
60 NEW HOTELS FOR THE END OF THE YEAR
In the first half of 2024, 40 new hotels/8,730 rooms were opened in Latin America. LE’s outlook for the remainder of the year anticipates the opening of an additional 60 new hotels with 8,825 rooms in the third and fourth quarters, totaling 100 new hotels with 17,555 rooms by year-end.
LE’s hotel new openings forecast anticipates a steady increase in new hotel openings with 111 new hotels and 18,816 rooms projected to open in 2025, and a further increase in 2026 to 131 new hotels with 18,293 rooms projected to open.
