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Rendering of the upcoming Hyatt Centric Queretaro Courtyard Hotel – Image Credit Hyatt
- The Latin American hospitality industry is experiencing significant growth, with hotel construction in the region expanding by more than 10% annually, according to the Q3 2024 Latin America Construction Pipeline Trend report by Lodging Econometrics (LE).
- The construction pipeline currently includes 642 projects and 104,513 rooms, reflecting 11% and 10% increases in project and room counts, respectively, compared to the previous year.
The report further sheds light on the pipeline data, revealing several positive developments. At the end of Q3 2024, the region had 269 projects with 47,151 rooms under construction, a 10% year-on-year increase in both metrics. The number of projects anticipated to commence construction within the next 12 months has grown to 183, equating to 30,184 rooms, marking a 7% increase in projects and 9% in rooms. Early planning for an additional 190 projects and 27,178 rooms is also underway, representing 17% and 11% growth, respectively.
The report also breaks down the regional hotel pipeline by chain scale segment. The largest pipelines are in the upscale, luxury, and upper upscale chain scales, with 134, 121, and 104 projects, respectively. Geographically, most projects are located in Mexico and Brazil, accounting for 52% of the total project count and 50% of the room count. The Dominican Republic and Colombia follow with a significant number of projects.
Major cities with large construction pipelines include Mexico City, Georgetown, Sao Paulo, Lima, and the Riviera Maya. During Q3 2024, 50 new project announcements totaling 9,775 rooms were made, and 27 projects began construction. By the end of the third quarter, 49 new hotels with 9,688 rooms had opened.
LE expects an additional 42 new hotels with 5,661 rooms to open in Q4 2024, bringing the total for the year to 91 new hotels and 15,349 rooms. Moving forward, LE projects continuous growth for the region’s hospitality industry, with 108 new hotels and 19,551 rooms forecasted to open in 2025 and a further increase to 138 new hotels and 19,513 rooms in 2026.