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LE's Latin America 2009 Lodging ReportFebruary 20, 2009 By: Joe Pike
At the end of 2008, the Total Construction Pipeline for Latin America was 616 projects/107,433 rooms. Pipeline totals were down 10 percent by projects and 16 percent by rooms from the cyclical peak in the first quarter of 2008, according to the report.
The report goes on to say, “While the region's Pipeline is trending down, to date the retreat is not as steep as it is in other world regions. Developers still consider it an attractive area for lodging development, particularly if they are partnered with a major hotel franchise company.”
The region's Pipeline is front-end loaded, with 55 percent of total projects already under construction. Having secured financing before the economic slowdown and global credit crisis impeded lending, these projects will most likely enter as new supply, with the rate of New Openings ramping up through 2010, according to the report.