Lodging Econometrics’ latest report reveals a positive trend in the Latin American hospitality industry, with the construction pipeline reaching 642 projects and 104,513 rooms.
This marks significant year-over-year increases of 11% in the number of projects and 10% in room count.
Project construction and upcoming developments
As of the end of Q3 2024, there are 269 projects with 47,151 rooms actively under construction, reflecting a 10% rise in both categories compared to the previous year.
Furthermore, the report indicates that 183 projects, comprising 30,184 rooms, are scheduled to commence construction within the next year, marking increases of 7% in project count and 9% in room count.
The early planning phase also shows promise, with a 17% increase year-on-year to 190 projects and an 11% rise in room count to 27,178 rooms.
Insights into chain scale segments
The report breaks down the pipeline by hotel chain scale, highlighting the upscale segment with 134 projects and 18,592 rooms, the luxury segment with 121 projects and 24,924 rooms, and the upper upscale segment with 104 projects and 21,300 rooms.
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By GlobalDataIn terms of geographical distribution, Mexico leads with 229 projects and 35,975 rooms, closely followed by Brazil, which accounts for 103 projects and 15,731 rooms.
The Dominican Republic has reached an all-time high of 59 projects and 14,407 rooms, while Colombia follows with 27 projects and 3,671 rooms.
Project announcements and future projections
During the third quarter of 2024, the Latin American pipeline welcomed 50 new project announcements, adding 9,775 rooms, and 27 projects began construction.
A total of 49 new hotel openings were recorded, encompassing 9,688 rooms. Looking forward, the report anticipates the opening of an additional 42 new hotels with 5,661 rooms in the final quarter of 2024, which would result in a total of 91 new hotels and 15,349 rooms for the entire year.
Looking further ahead, Lodging Econometrics forecasts continued growth, predicting 108 new hotels with 19,551 rooms to open in 2025 and a further increase to 138 new hotels and 19,513 rooms in 2026. This trend signals a robust recovery and expansion in the Latin American hospitality sector.