STR Global reports Central/South America hotel pipeline for October 2010
The Central/South America hotel development pipeline comprises 139 hotels totalling 21,966 rooms, according to the October 2010 STR Global Construction Pipeline Report released this week. “While Brazil takes the lead with the most hotel projects in a country across Central and South America, it is Panama City, Panama, that dominates on a city level in the development pipeline”, said Elizabeth Randall, managing director at STR Global. “The city benefits from a stronger recovery in Panama and a positive economic outlook due to the expansion of the Panama Canal. Panama City has 21 hotels in the pipeline, followed by Buenos Aires with six hotels and five hotels in the Brazilian markets of Rio de Janeiro and Sao Paulo”. Among the markets in the region, Panama City reported the most rooms in the In Construction phase with 2,468 rooms. Other markets that reported a significant number of rooms in the In Construction phase for the month include: Buenos Aires, Argentina (560 rooms); Lima, Peru (542 rooms); Bogota, Colombia (385 rooms); and Sao Paulo, Brazil (364 rooms) (Source)
Editor's Comment: Wow. I didn't know there are now 21 hotels under construction with 2,468 rooms - that seems like a massive expansion of the market. I bet prices will drop as these new rooms come online. This, combined with the delivery of all of the new apartment buildings, should also work to reduce prices for apartment rentals. It seems the niche of rentals of short term fully furnished executive apartments might be spared to some degree, because they still represent a middle ground between luxury hotels and unfurnished apartments.
