Page 88 - InvestmentGuideBrasilEng

OFFICES HOTELS
ROOM STOCK IN BRAZIL

The commercial market is also recording higher Since the announcement that Brazil would host
levels each year, with increasing net yields, de- important international events like the World 64%
creasing vacancy rates and growing rentals per Cup in 2014 and the Olympic Games in 2016, the 12%
square meter. Sao Paulo, Rio de Janeiro, Recife, hospitality industry has begun a steady expansion
Brasilia, Curitiba, Porto Alegre and Belo Horizon- cycle. The ongoing rise of Brazil’s middle class, 64% 12%
te are the top state capitals for offices growth. coupled with growing inbound tourism flows 15%
In these cities the vacancy rates are at incredibly and a more dynamic domestic travel industry,
low levels – around 6.5%. Below 10% indicates have helped boost performance in hotel room 9%
that demand is greater than supply and above occupancy rates and revenue per available room
15% the opposite. Rental yields are increasing (RevPAR) since 2006. The occupancy rate was 15%
from 9% to 12% yearly. Part of this is due to lack of 58% in 2006 and nearly 70% in 2011. Likewise, rev-
space for new development in some major cities enue per available room went from R$82.00 to
in the country, but a considerable porting is due R$147.00 - a 20.5% increase. A new condo hotel 9% HOTEL AND CONDO HOTEL NATIONAL CHAINS
to economic development, service growth and cycle is taking place in large cities and some of HOTEL AND CONDO HOTEL INTERNATIONAL CHAINS
industrial expansion, which leads to demand for these new ventures are already being launched.
more office space for administrative areas. There The same decentralization seen in the shopping INDEPENDENT HOTELS UP TO 20 ROOMS
are also a number of secondary and tertiary cit- center industry also applies for hotels. Hotels are INDEPENDENT HOTELS WITH MORE THAN 20 ROOMS
ies that are experiencing high demand for offices being built in secondary and tertiary cities, due
expansion and that have not yet been developed, to low stock and number of huge infrastructure
such as Campinas and Ribeirao Preto. projects in progress - mining, oil, gas, energy, ect.
Investment Criteria such as economic relevance,
population growth and land prices also play an
important role in this strategy.
TOTAL NUMBER OF HOTELS AND HOTELS CONDOS IN BRAZIL - 2012

PROPERTY TYPE HOTELS % ROOMS %
Hotel and condo hotel 361,00 3,76% 52.640,00 11,625
national chains
Hotel and condo hotel 392,00 4,09% 70.229,00 15,51%
international chains
Independent hotels 3.489,00 36,37% 38.545,00 8,51%
up to 20 rooms
Independent hotels with 5.350,00 55,78% 291.433,00 64,36%
more than 20 rooms
Total 9.592,00 100,00% 452.847,00 100,00%

Source: Jones Lang LaSalle Hotels

86 87