Mexico and Brazil are leading a remarkable hotel construction boom in Latin America, with a reported 685 projects and 110,033 rooms in Q4 2024. Active construction includes 270 projects and 48,138 rooms, both showing notable YOY growth. With luxury segments flourishing, Mexico remains at the forefront, while Brazil closely follows. Projections for 2025 and 2026 indicate continued expansion in hotel numbers and room availability.
In Q4 2024, Mexico and Brazil have spearheaded a remarkable hotel construction boom in Latin America, as highlighted by the latest report from Lodging Econometrics. The construction pipeline has escalated to 685 projects totaling 110,033 rooms, marking a 15% rise in new projects and a 13% increase in room availability compared to last year.
As of the end of Q4 2024, there are 270 projects under construction, encompassing 48,138 rooms, both reflecting a 13% year-over-year growth. Additionally, 179 projects with 28,942 rooms are scheduled to commence within the next year, showing a 4% uptick in projects and a 5% rise in room count. The planning phase was notably active, with 236 new initiatives totaling 32,953 rooms, indicating a 28% growth in project counts and a 20% increase in rooms year-over-year.
Luxury hotels have surged, with a record 129 projects and 26,077 rooms in development, while the upper-upscale segment reached 115 projects and 22,509 rooms. Upscale properties also showed strong growth, consisting of 136 projects and 19,220 rooms, together accounting for 56% of the total projects and 54% of available accommodations in the pipeline.
Mexico leads the charge in this sector, boasting 248 projects and 38,104 rooms, achieving a 10% increase in projects and 7% in rooms year-over-year. Following closely is Brazil, with 106 projects and 14,799 rooms, reflecting a 23% increase in projects and a 9% rise in rooms. The Dominican Republic showcases significant growth as well, tallying 66 projects and 16,908 rooms, which presents a 38% and 31% jump in projects and rooms respectively.
In Q4 2024, 25 new hotels with 4,470 rooms launched across Latin America, culminating in an annual total of 73 hotels and 13,754 rooms. Projections indicate that 106 new hotels (17,615 rooms) will debut in 2025, followed by an anticipated 133 new hotels (20,422 rooms) in 2026, pointing to a vibrant growth trajectory for the industry.
The hotel construction landscape in Latin America is evolving rapidly. With rising travel demand and investment opportunities, countries such as Mexico and Brazil are at the forefront of this expansion. The region’s increasing capacity is reflective of a broader trend in the hospitality sector, supported by robust economic indicators and a shift towards luxury accommodations. Understanding this growth is crucial for stakeholders in the travel and tourism industry.
The data reveals a significant upward trend in hotel developments across Latin America, driven primarily by Mexico and Brazil. The increases in both project counts and room availability suggest a thriving hospitality market, with expectations for continued robust growth in the coming years. This boom not only enhances the region’s tourism appeal but also positions it as a prime destination for future investment opportunities in the hospitality sector.
Original Source: www.travelandtourworld.com
