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HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future Wimberly Interiors present a stunning 7-page portfolio of hotel design trends The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

www.hotel-yearbook.com

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COUNTRY REPORT
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At Horwath HTL, we focus one hundred percent on hotels, tourism and leisure. With over two hundred and fifty professionals world wide, our network can draw on a tremendous amount of international experience and local knowledge that gives us, and our clients, a unique advantage. We offer a broad range of advisory solutions that covers the whole cycle of the hotel product, starting with planning and development, on to asset management and operational advice, to transactional and financial restructuring. At any stage, Horwath HTL will add value to your project and ensure that you receive the very best support every step of the way. www.horwathhtl.com

COUNTRY REPORTS

AMERICAS

BRAZIL
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 the inflation 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-off (from US$ 133 YTD October in 2012 to US$ 129 in 2013). Nonetheless, this does not reflect the actual ADR increase in local currency, which rose 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.

by Mariano Carrizo

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 event will 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 international or 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 different franchises for different 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.

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HOTEL Yearbook 2014 annual edition

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Hotel, Tourism and Leisure

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HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future ESPAs Sue Harmsworth on the coming changes in the global hotel spa industry The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

This e-publication may be ordered online | 19.50

www.hotel-yearbook.com

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