SAHIC - Hotel Investments in Expansion

On March 24 and 25, Rio de Janeiro will host the SAHIC Latin America & The Caribbean, Hotel & Tourism Investment Forum, one of the most important hotel investment events in the region. On the first day of the event, executives from major international chains shared their strategies to strengthen their presence in Brazil and Latin America. Among the topics discussed were brand expansion, financing challenges and the need to boost foreign tourism in the country.

Hyatt bets on converting mid-scale hotels

Hyatt Hotels Corporation has announced the launch of Hyatt Select, a new brand focused on converting mid-scale and economy hotels. According to Cristiano Gonçalves, VP of Development for South America and the Caribbean, this initiative is part of the chain’s strategy after more than a decade in Brazil. Despite operating only four of its own hotels in the country, Hyatt intends to grow with a more flexible and accessible model for investors.

Gonçalves also highlighted the challenges facing the sector, such as the difficulty of obtaining financing and the need to strengthen international tourism. Brazil currently receives fewer foreign tourists than other major destinations, a factor that impacts the growth potential of the network in the country.

Wyndham maintains Brazil as a priority market

Wyndham Hotels & Resorts has reinforced its commitment to Brazil as one of its main markets in Latin America. Maria Carolina Pinheiro, VP of Development for the region, revealed that 60% of the contracts signed by the company in 2023 in Latin America were in Brazil and the Dominican Republic.

Pinheiro highlighted that conducting business in Portuguese and a structure adapted to local rules are fundamental for growth. Despite the challenges in financing new ventures, the executive remains optimistic about the potential of the domestic market and the appreciation of foreign tourism due to the favorable exchange rate.

Marriott expands luxury and all-inclusive in Brazil

Marriott International is strengthening its presence in the luxury and all-inclusive segment in Latin America, with a special focus on Brazil. According to Bojan Kumer, Regional VP of Hotel Development, the demand for luxury properties has grown significantly in the country, driven by the success of the W Hotel São Paulo.

The company is also investing in the all-inclusive model, with a focus on the Westin Porto de Galinhas, its first hotel of this type in Brazil. In the mid-scale segment, Marriott is investing in City Express, a brand acquired in Mexico in 2023 and adapted to the Brazilian market, consolidating its presence in the country with a local and personalized approach.

Accor bets on the franchise model to grow in South America

Accor has stepped up its expansion strategy through franchising, with 90% of new contracts signed through this model. Abel Castro, Senior VP of Business Development, said the company is looking to balance its presence in South America by expanding beyond Brazil, where it already has 350 hotels in 150 cities.

The leisure segment has been a focus, with new developments in tourist destinations such as Gramado, Recife and Maceió. In addition, Accor invests in premium and mid-scale brands, such as Tribe and Handwritten, and bets on underexplored markets, such as cities driven by agribusiness.

Castro highlighted that the main barrier to hotel development in Brazil is the lack of adequate financing. Even so, the company aims to reach 400 hotels in 200 Brazilian cities in the next two years, consolidating its leadership in the sector.

BWH Hotels focuses on luxury with the expansion of World Hotels

BWH Hotels, owner of the Best Western brand, is expanding its presence in the luxury segment in Latin America through World Hotels, acquired in 2019. According to Richard Rehwaldt, the company's VP for the region, six new contracts were signed last year, and 2024 has already started with two more new partnerships.

Traditionally strong in the mid-market, Best Western is now looking to consolidate its presence in the premium sector, following the evolution of competitors such as Marriott and Hyatt. With almost 4,000 hotels worldwide, BWH is betting on the expansion of World Hotels to strengthen its position in the hospitality sector.

GHL Hotels plans to double its rooms management in Latin America

GHL Hotels, one of the leading hotel operators in Latin America, is expanding rapidly. According to Andrés Fajardo, the company’s CEO, the goal is to double its management to 15,000 rooms in more than 100 hotels in the coming years.

The strategy includes consolidation in countries where it already operates, such as Colombia, and a strong focus on the Mexican market, which is considered highly attractive. GHL stands out for its multi-regional and multi-brand approach, operating hotels from Mexico to Chile with an owner-focused model.

In addition to seeking new contracts, the company also intends to invest directly in hotels through Key Money and strategic acquisitions, ensuring sustainable growth and greater returns for investors and guests.

Outlook for the hotel sector in Latin America

The scenario presented at SAHIC Latin America & The Caribbean shows an optimistic hotel sector, but aware of the challenges. Financing new ventures, valuing foreign tourism and adapting business models to the particularities of the Latin American market are key issues for the growth of international chains in the region. With increasingly diversified strategies, from franchises to direct investments.

Report: Mary de Aquino.

Photo: Divulgação.