Download 2011 /2012 / 2013/2014 : Quotes and facts from Hotel Trends

2011 /2012 / 2013/2014 : Quotes and facts from Hotel Trends, Global
Wellness Hospitality Industry Trends, Country and Market Insights, World
Travel Trends that relate to Latin America market: Brazil.
Emerging Trends in Real Estate: Latin America 2014– Price Waterhouse Cooper Report.
¨ Latin American countries – led by Brazil provide continuing opportunities for Real Estate Developers
and Investors if they can manage to master local markets and find suitable local partners¨
¨ Brazil looks like a ¨Safe Heaven¨ and the country seems ¨easier to invest in than either India or
China¨. The few institutional grade office and residential properties in site-constrained Sao Paulo and
Rio de Janeiro have been ¨priced to perfection¨, while all asset categories remain under supplied
across the country. The Consensus is 15 to 20 years of growth lie ahead¨
Source: http://www.uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-EstateUS-2013.pdf
Emerging Trends in Real Estate: Latin America 2014- Price Waterhouse Cooper Report.
¨ According to Real Capital Analytics (RCA). Concurrently, RCA reports that U.S investors have
invested a total of $1.11billion in real estate in Latin America countries in 2013 (through October
18,), compared with the $693.5 million they invested during 2012¨.
¨ Opportunistic real estate fund manager in the United States who focus on Latin America say they
are achieving internal rates of return of about 20%. Their investments reflect a bet on an emerging
middle class of young consumers who are starting to spend in a discretionary manner¨.
¨ U.S investors said the value of his company’s real estate investment in Brazil is ¨ up dramatically¨
over the last two years in local currency terms but that currency depreciation has ¨taken away all of
those gains.¨ still, they explained, they expect their investment to deliver robust returns over the long
term.¨
Brazil: ¨ A recent survey by the Association of Foreign Investors in Real Estate found that, despite
large protests against the Government in the first quarter of 2013, foreign investors still consider
Brazil more attractive than any other emerging market in the world for the second year in a row for
real estate acquisitions¨. ¨ The survey also found that foreign investors consider Brazil second best
(after the United States) in ¨ providing the best opportunity for capital appreciation¨.
Source: http://www.uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-EstateAmericas-2014.pdf
Hotel Year Book Country Report – Brazil – 2013/2014:
¨ Foreign Direct Investment in the country (FDI) continues to grow significantly. In 2011, a total of
US$75.95 billion was invested in Brazil by foreign companies, accounting for 2.7% of the country´s
GDP International tourism demand continued to grow steadily in 2011, and is expected that Brazil
will reach a total of 6.2million international tourists by the end of 2012¨
Outlook for 2013: ¨ The Brazilian economy is expected to grow at higher rates over the next year.
Within this growth, investment and development of hotel sector will continue their consolidation
process regarding he arrival of new products and brands to the market and an increasing volume of
international and domestic tourism demand ¨
Business Scenarios for 2014 and Beyond.
¨Macroeconomic scenario for Brazil remains modest for next year, with growth forcasted of 2.5% for
the national GDP and a similar inflation rate (5.8%).¨
¨Due to the significant economic growth that Brazil showed over the last year, hotel development
and investment presented significant growth, over US$13 billion should be invested in the hotel
sector during the 2013-2016 period. This investment would represent more than 400 new hotels and
more than 70,500 new rooms in the Brazilian market¨
¨ Most of the new hotel supply will be developed and financed through condo hotel property
structures and be managed by international or national hotel chains¨
Global Wellness Hospitality Industry:
¨ In 2013 the Global Spa and Wellness Summit (GSWS) and Stanford Research Institute (SRI) released
a study valuing wellness tourism as a US$438.6billion market, representing one in seven total
domestic and international tourism dollars and projecting that it would grow over 9% annually over
the next five years (twice the rate of global tourism) to US$678.5billion by 2017¨
Business Scenarios for 2014 and beyond:
¨ As of 2010, SRI had valued the global wellness tourism industry at US$106billion and three years
later reported that its value had reached US$438.6 billion with a forecast to near US$680 billion by
2017, outpacing global tourism growth by nearly 50%. Health wellness sales overall are predicted to
hit US$1 trillion by 2017 as well. Thus, the foreseeable future for the global wellness industry is
undoubtedly promising¨.
¨ The future possibilities for wellness extend far beyond the traditional hotel spas and fitness facilities
of the past. Today, wellness has not only become the central inspiration for wellness focused hotels¨
¨ Consumers are beginning to look at health, complimentary medicine, beauty, spa and wellness and
lifestyle in a totally different way, and hotels need to consider their service offering to adapt to this
new way of thinking¨
¨ More importantly for hotels, the spa and wellness industry will segregate and hotels will have to
make choices if they want to deliver the evolving luxury spa and wellness experience that guests will
increasingly demand ¨
Source: http://www.eurofinhospitality.com/media/eurofin/document/0/hotel-yearbook-2014whither-hotel-asset-management.pdf
Global Hospitality Insights: Top thoughts for 2013 – Ernst & Young
Shifting Segments: responding to changing preferences.
¨ Driven by greater health consciousness among aging consumers, demand for hotels that promote
health and personal well-being is increasing¨
¨ Hotels around the world are quickly adapting to this wellness trend in a variety of different ways¨
¨ From multigenerational travel to wellness to the psychographics of today´s urban traveller, the
ongoing segmentation of hotel demand is likely to shape the industry in years to come.¨
¨ Select-Service hotels can achieve margins ranging from 35.0% to 40.0% most of the leading selectservice brands are planning aggressive expansion in Europe, Latin America and emerging Asian
countries¨
¨ Hotel companies with adaptive amenity offerings and innovative marketing will be well-positioned
to create value from the increasing specialisations of traveller demand¨.
¨ A few bright spots are still remain in the world in terms of hotel values. In South America, increased
liquidity, favourable financing and strong domestic demand, combined with the upcoming 2014 FIFA
World Cup and 2016 Summer Olympic Games in Brazil, have fuelled international investment,
resulting in increases in hotel values¨.
Source:
http://www.ey.com/Publication/vwLUAssets/Top_thoughts_for_2013/$FILE/Top_thoughts_for_2
013.pdf and http://www.ey.com/Publication/vwLUAssets/EY__Global_hospitality_insights_2014/$FILE/EY-Global-hospitality-insights-2014.pdf
Wellness Tourism from France, Germany, Italy and the UK to Latin America
¨ Latin America needs to build its strong active, ecotourism image and authentic traditional skills to
deliver a high quality, distinctive product that will add value to its existing tourism product¨
¨ Wellness Tourism has developed rapidly since the 1970s as a component of health tourism.¨
¨ Wellness Tourism continues to grow; it represents about 6% (524million) of all domestic and
international trips worldwide and about 14% of expenditure. Global wellness tourism is projected to
grow by more than 9% per year to 2017, nearly 50% faster than overall global tourism¨ Source Global
Spa and Wellness Summit, The Global Wellness Tourism Economy, SRI International October 2013).
¨Wellness travellers from France, Germany, Italy and the UK can be found in all age and income
groups. However those taking a long haul trip to Latin America are most likely to come from the
higher socio-economic groups and international spa tourists are predominantly professional women
(75%).¨
¨Central and South Americas´s Key Assets for Wellness Tourism are considered to be:


The natural environment
Traditional & Complementary treatments.
South America offer is expected to stay in wellness tourism as well as in leisure and recreational spas.
It is expected that the region of Latin America will focus on Wellness Hotels and Resort Spas by 2012¨
Source: CBI Product Factsheet: Wellness Tourism from France, Germany, Italy and the UK to Latin
America – Practical Market Insight:
http://www.cbi.eu/system/files/marketintel_documents/2014_pfs_wellness_tourism_from_franc
e_germany_italy_and_the_uk_to_latin_america_0.pdf
South America Outpaces North America – again:
¨Smaller South American market has continued to soar upwards. Similar trends are forecast for 2014
onwards¨
Hotel Investors play safe with Premium and Budget:
¨ One major reason for this divergence is the sheer expansion of Luxury and Budget hotels on the
market, according to hotel trade journalist Maria Puertz-Willems, founder and hotel industry
information platform hospitalityinside.com. Tighter financing due to the global financial crisis has
resulted in investors playing safe by focussing on strong markets, well –known brands and
successfully established business models to ensure their return on investment.¨ ¨ This means that
hotel operators are being driven into new extremes, such as luxury or budget¨
Source: http://www.itb-berlin.de/media/itbk/itbk_media/itbk_pdf/WTTR_Report_2014_Web.pdf