News from SAHIC 2014 – September 15-16

During 2 days, more than 350 delegates from 20 countries have gathered at the South American Hotel & Tourism Investment Conference (SAHIC). Recognized as the leading venue for the hospitality industry in the region, SAHIC is known throughout the hotel investment world as the place where deals get done. This is the must-attend event for anyone with interest in hospitality in the region and where companies choose to break their latest announcements.

SAHIC 2014 has brought together the leading movers and shakers for hotel investment and development in South America. The news from SAHIC includes the following items of note:

• At a press conference held during SAHIC, Paulo Pena, Senior Vice President and Managing Director of Wyndham Hotel Group for Latin America announced the signing of a franchise agreement for the Wyndham Quito Airport Grand Condor, the first Wyndham Hotels and Resorts property in Ecuador's capital city. The full-service, 146-room property, which is owned by Pronobis, is the only hotel on the new international airport grounds. The property is part of an existing deal to develop and franchise eight hotels in the country under Wyndham Hotel Group brands over 10 years. "Working with local partners is the right approach for us in Latin America," adds Pena.

• Marriott International's Chief Development Officer for the Caribbean and Latin America Region Laurent de Kousemeaker announced plans to open the 202-room Marriott Hotel in Guayaquil, Ecuador in 2016. The Guayaquil Marriott will be the company's third property in Ecuador and is being developed by Hotecapsa, overseen by Mr. Angel P. Sanchez. Mr. Sanchez is a major local developer in Guayaquil who also opened the famous Sanchez Aguilar Theatre, The Plaza Buena Vista Mall and the Plaza del Prado Mall.

• David P. Berg, Chief Operating Officer of Carlson shared at a press conference during SAHIC that the company has found great success in Brazil because of the partnerships the company has in that country. Berg states that Carlson is seeking to duplicate this model with a pending agreement in Chile for a multi-unit partnership with Park Inn by Radisson, and in other countries as well. Berg announced that the new Radisson Red, a lifestyle select brand catered to the millennial-minded customer will be a focus for the region. Geographically, Carlson is paying attention to the midscale market because of the growth of the middle class in South America and initiatives are geared with eyes on Chile, Colombia, Brazil, Mexico and Peru.

• Ted Middleton, Senior Vice President of Development of The Americas for Hilton Worldwide commented that the organization plans to open nearly 40 hotels and resorts in Latin America by the end of 2016, increasing its portfolio in the region by approximately 60% within the next two years. Middleton added that 75% of this new development is with the Hilton Garden Inn and Hampton by Hilton brands.

• Roland de Bonadona, Chief Executive Officer of Accor for the Americas and the Caribbean claimed that joining the existing 230 hotels and 170 secured in the pipeline for South America, Accor will operate 400 hotels in the region in 170 cities by the end of 2018.

• Global Hyatt Corporation will look to continue its expansion of its all-inclusive brands Hyatt Ziva and Hyatt Zilara. According to Senior Vice President, Real Estate and Development for Latin America Patrick McCudden, "we have a small presence in Latin America so this is a great opportunity for growth and we are looking to focus on the midscale market. Hyatt Place has opened in Chile and soon in Panama and so our brands are gaining momentum in the region."

• A 287-room InterContinental hotel in Cartagena is scheduled to open December 2014, according to IHG Chief Development Officer for the Americas Joel M. Eisemann. Other IHG projects in the pipeline include the Holiday Inn and Holiday Inn Express Rio de Janeiro (594 keys , to open July 2016) and the Holiday Inn Quito Airport (130 keys , to open late 2016). Additionally there are approximately 15 other projects currently in development in the region. "The markets with the greatest opportunity for IHG are Brazil (despite the financing and land price challenges), Mexico and Colombia."

• "As also seen in other parts of the world, Four Points is riding a swell of growth in the region thanks to its 'best for business aproach'," according to Osvaldo Librizzi, Co-president Starwood Hotels & Resorts Worldwide, Inc. Americas. Seven new Four Points hotels are slated to debut in Latin America in the next three years. In Colombia, the W Bogota will open by the end of this year, followed by a Sheraton in Cartagena at the end of 2015. W Panama and Sheraton Santa Cruz are due to open in 2017.

• According Arturo Garcia Rosa, President and Founder of SAHIC, 44% of the new projects underway in South America are focused on the mid-market segment. Arturo also passionately shared that the region has tremendous ecological natural resources and it us up to the hospitality industry in South America to protect the natural resources to keep tourism as a vibrant economic sector for the continent.

• Patricia Boo, Senior Business Development Manager
STR Global, pointed out that according to STR Global's data, "we continue to see supply outpacing demand in the Central and South American region; this is having a negative effect in their occupancy levels, with a -1.7% declined compared to the same period last year (January to July)". Patricia added that "We have seen a general ADR growth in the region during 2014, with Chile leading in terms of RevPAR (USD 102), followed by Peru (USD 89) and Brazil (USD 86). The development pipeline for Central and South America (as of August) is concentrated on the upscale (24% of rooms under contract), followed by upper-midscale (22%) and midscale (22%) chains".

• Eric Danziger, honored by SAHIC as its 2014 Inspirational Icon Keynote Speaker shared with the conference attendees that the industry has to react quickly to keep up with customer needs, particularly as technology advances so fast. "A hotel room eight years from now will not look like the hotel room of today."

• During 20/20 Showcase interesting projects and innovative ideas were presented before the audience, looking forward to connect the opportunities to investors and find the proper partners to take them ahead. The projects were:

• Royal Green Apartments and Hotel (Quito, Ecuador): 4 star hotel mixed used project, 100 rooms, apartments and offices, with the architectural project of Carlos Ott. Estimated investment: hotel USD 11 MM, apartments USD 12 MM, offices USD 3 MM.

o International Branded Upscale Hotel (Lima, Perú): 200 rooms hotel to be managed by international operator. Estimated investment: USD 30.3 MM

• Convent Obra Vía Viceroy Cartagena (Cartagena de Indias, Colombia): 102 rooms, 15 cabanas. Estimated investment: USD 80.7 MM
• Heritage Houses (Quito, Ecuador): includes 3 heritage properties located in the Historic Centre: 1 top category hotel, 1 top category hostel, 2 meeting rooms or restaurant for 200 people. Estimated investment for each property: Casa Cadisán USD 1.06 MM, Casa Pérez Pallares USD 4.4 MM, Casa Mejia UDS 1.5 MM

• SAHIC Awards 2014: SAHIC´s recognition to members of the industry:
  • Hotelier of the year: Jorge Melero, CEO, Libertador Hotels, Resorts & Spas
  • Best New Hotel: Sofitel Montevideo Casino Carrasco & Spa (Uruguay)
  • Inspirational Lidership Icon: Eric Danziger
  • Best New Deal: Grupo Terranum

• The Date and Venue for SAHIC 2015, was announced: September 28 -29 in Lima, Perú

Media Contact

Corina Holste

Press & Communications Director, SAHIC [email protected] +54-911-5319-9501