The last 12 months in the LAC region have witnessed some significant performance ups and downs. High level, RevPARs in LatAm declined, whilst those in the Caribbean were stable and even grew slightly. Zooming in, Brazil suffered from low levels of demand growth and high levels of supply growth, with RevPAR falling by -48.2% in Rio and by -35% in Sao Paulo. Material declines also occurred in Bogota (-17.4%) and Buenos Aires (-8%).

Relative stability in the Caribbean has resulted in a good number of very sizeable projects being announced since our last LAC Hotels Monitor. These include: a USD1.5bn mixed use scheme on a 38ha site at Pensioner's Beach on Antigua, being promoted by Mr Ahmed Abbas Alewi (Antigua and Barbuda's Ambassador to Iraq); and Robert De Niro is in on the action having announced a USD250m resort project on the former K-Club resort site, Barbuda.

The number of transactions with full publicly available data has dropped off and our Transaction Tracker is looking lighter than normal of late. Perhaps declining performance levels are having an effect on value expectations, which, combined with continuing funding constraints, are affecting overall appetite for deals in the region.

From a construction perspective, the levels of development activity are such that steady, if modest, cost inflation is prevailing in most countries.

In recognition of the growing importance of pipeline in the region, our final page feature provides an overview of planned hotel development in key countries, broken down by standard/quality of accommodation to be built.

About WhiteBridge Hospitality

Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.

Philip Camble
Director
+44 20 7195 1482
Whitebridge Hospitality