|Argentina needs more guest beds - focus on mid-class hotels.|
Monday, 25th November 2013
Source : TOPHOTELPROJECTS
In Argentina strong domestic tourism is in continuous progress, this year the number of overnight stays should increase by three percent: Wyndham, Hyatt and Accor are expanding.
According to TOPHOTELPROJECTS, the worldwide leading provider of global b2b hotel data, there is a huge potential for additional mid-class hotels and some upper class properties. One outstanding project is the St. Regis Hotel & Residences in Buenos Aires. The high end luxury hotel with 160 rooms will open its doors in June 2014.
According to Argentinian market experts there is a need of three and four star rated properties especially in the north of Buenos Aires along the Panamericana highway (close to the city Pillar) as well in the cities Zárate and Campania. Also in the country’s interior in cities such as Bahia Blanca, Rafael, Villa Maria, Neuquen, Puerto Madrzn and Commodore Rivadavia offer the opportunity for more new buildings. Another focus are the wine-growing areas Cuyo (Mendoza, San Juan). The trend is mixed real estate properties, which are combining hotels, offices, apartments and shops.
The total number of hotels in Argentina is almost the double than 14 years ago. Currently the county disposes more than 13,000 properties of all categories with nearly 600,000 beds. Every year since 2007, 340 hotel were added in average.
The hotel chain Howard Johnson (Wyndham Hotel Group) is one of the most expensive in Argentina. Besides 29 existing properties more than 25 new hotels are in the pipeline in this country. Only in 2013 seven new hotels opened. None of the investors are from the hotel industry, said the Argentina chief of Howard Johnson, Alberto Albamonte. Most of the investors are businessmen, who are investing their financial surpluses. By this chain the cost for a typical 80 room property is about ten million US-Dollars in average.
The European hotel company Accor plans the opening of ten new properties by the brands Ibis and Mercure among others in Buenos Aires, Tuchman, Puerto Iguazu, Pillar, Córdoba as well in the Cuyo regions. The group plans to increase their total capacity in Argentina by 1,000 rooms within the next three years.
The Hyatt group, which is currently operating two five star hotels in Buenos Aires and in Mendoza, will establish its four star brand Hyatt Place in Argentina and is currently checking possible locations such as Bahia Blanca, Neugues, San Juan and the northern suburbs of Buenos Aires. The Hilton chain is currently arising its third property (Hilton Pilar Hotel & Residences). Furthermore a long-time delayed project near the Iguazu waterfalls will be reactivated.
The leading local hotel chains are companies such as Amérian and Grupo Fën (brands Dazzler and Esplendor). Amérian currently arise five additional properties and plans to increase their capacity to a total of 21 properties until 2015. The hotel chain will be presented in every important city of Argentina with its two brands (Amérian and Merit). The Fën group will add ten new properties to their currently 20 hotels (half of them in Buenos Aires) and they are planning operate about 3.000 rooms in Argentina by 2014. The company is focussing mainly domestic tourists.
The government is planning a large tourism project in the province Misiones together with private partner in Puerto Libertad near to Iguazu waterfalls. The project comprises five hotels, a conference centre, a casino, three theme parks, sport facilities as well as vacation apartments. A private partner is the company Alto Parma, which belongs to the Chilean cellulose company Grupo Arauco and which is owner of the 500 hectare large area at the lake Lago Uruguaí. The construction of the premises as well and the construction of the apartments at plots sized between 1,500 and 10,000 square metre should go to private investors. The investment for the “Holiday Villages Uruguaí” called project are in the first five years more than 300 million US-Dollars.