The Hospitality Business In Brazil

The Hospitality Business In Brazil

– 2018: all Brazilian cities showed growth in the number of hotels. For the next 4 years more than R$ 4 billion in investments has been confirmed.

– Lack of rooms in several capitals and tourist sites: this shows the enormous space for newcomers and the potential expansion of the market.

– Number of hotels in Brazil: approximately 10 thousand.

– Hotels in the Central/South America region reported positive performance results during November 2018, according to data from STR.

US dollar constant currency, November 2018 vs November 2017

Central/ South America

• Occupancy: + 1.9% to 64.2%
• Average daily rate (ADR): + 17,5% to US $115.66
• Revenue per available room (RevPAR): + 19.8% to US $ 74.26

City of São Paulo

• Occupancy: 2.5% to 71.3%
• Average daily rate (ADR): + 110% to BRL 385.77
• Revenue per available room (RevPAR): + 12.8% to US $ 274.89

“São Paulo hotels have now posted 16 consecutive months of ADR growth. The absolute value in the metric was also the highest for any November in STR’s São Paulo database. STR analysts partially attribute the jump in rates to the depreciation of the Brazilian Real against the U.S. dollar. (Hotel News Now)”

– The increase in the average daily rate is due to the lack of rooms in cities such as São Paulo, which denotes a business opportunity both in expanding hospitality industry as well as creating new rooms on the site.

– Blackstone Fund acquired the Windsor Atlantica Hotel in Copacabana (Rio de Janeiro/RJ), converting it to the Hilton brand.

– Bill 530/2019: Authorize casinos in Brazilian resorts: Even more growth to the sector.

– At last, on March 2019, Decree 9,731 was enacted by the Presidency exempting the need for Brazilian tourist visa for Australia, Canada, USA and Japan => + favorable change R$ 4.00 / USD = attraction of more foreign tourists + employment generation + cost reduction.