Industry Update
Press Release18 February 2020

Horwath HTL Industry Report: Brazil Fractional Market

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Horwath HTL

Brazil has become one of the leading countries in terms of 'fractional' ownership in the hospitality industry. With a large domestic market discovering the benefits of this sector and a growing number of new projects, the multi-ownership business is changing the real estate tourism business' face. Luxury local brand, Fasano and international brands, Hard Rock and Wyndham are the most significant, sponsoring very significant projects in the region.

Fractional ownership launched in 2013 on the back of the failure of time-share. Multi-ownership, fractional or fractional ownership is the structure in which different buyers, the "multi-owners", acquire fractions of a single real estate asset. Options for the acquisition of the multi-ownership assets such as long-term financing, flexible payments means, and the possibility of interchanging with existing properties, have quickly consolidated this system as the most successful mechanism to develop tourism properties in Brazil.

Many kinds of new projects are being launched and several international brands are interested in entering into this new segment of the tourism business. It is forecast to achieve the 20,000 rooms within a couple of years with at least four leading international brands active in the segment. Brazilians love a mechanism that allows them to buy simply with long-term financing, provides properties deeds and allow interchanging with other destinations. The future of Brazilian (and surely South American) vacations is fractional!

About Horwath HTL

Horwath HTL is the world"s largest hospitality consulting brand with 45 offices across the world providing expert local knowledge. Since 1915 we have been providing impartial, specialist advice to our clients and are recognized as the founders of the Uniform System of Accounts which subsequently has become the industry standard for hospitality accounting. We focus one hundred percent on hotels, tourism and leisure consulting and have successfully completed over 16,000 projects.  If you have any questions, please contact James Chappell, Global Business Director at [email protected].

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Stephanie Henley
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