STR: Caribbean/Mexico and Central/South America hotel construction up 30.7% in April

LONDON - STR’s pipeline data for the Caribbean/Mexico region showed 131 hotel projects accounting for 29,187 rooms in construction as of April 2019. This represented a 30.7% year-over-year jump in the number of rooms in the final phase of the development pipeline. 

A majority of the region’s rooms in construction are in three segments. Of those three, upper upscale projects represented the largest percentage increase (+37.0%) in activity year over year. 

1. Upper Upscale: 6,566 rooms (+37.0%)
2. Luxury: 6,215 rooms (+33.9%)
3. Upscale: 5,886 rooms (-1.5%)

Four countries in the region reported more than 1,000 rooms under construction. Mexico led with 15,731 rooms, which represented 3.9% of the country’s existing supply, followed by Dominican Republic (6,216 rooms, 8.9% of existing supply). 

1. Mexico: 15,731 rooms (3.9%)
2. Dominican Republic: 6,216 rooms (8.9%)
3. Jamaica: 2,144 rooms (8.4%)
4. Cuba: 1,327 rooms (2.1%)

Central/South America hotel construction down 5.3% in April
STR’s pipeline data for the Central/South America region showed 168 hotel projects accounting for 23,324 rooms in construction as of April 2019. This represented a 5.3% year-over-year decline in the number of rooms in the final phase of the development pipeline. 

A majority of the region’s rooms in construction are in three segments. Of those three, midscale projects represented the only percentage increase (+29.5%) in activity year over year. 

1. Midscale: 5,551 rooms (+29.5%)
2. Upscale: 5,229 rooms (-22.8%)
3. Upper Upscale: 4,842 rooms (-21.7%)

Five countries reported more than 1,000 rooms under construction. Brazil led with 10,085 rooms, which represented 3.7% of the country’s existing supply, followed by Colombia (3,743 rooms, 7.1% of existing supply). 

1. Brazil: 10,085 rooms (3.7%)
2. Colombia: 3,743 rooms (7.1%)
3. Chile: 2,196 rooms (5.8%)
4. Peru: 2,106 rooms (7.6%)
5. Argentina: 1,049 rooms (1.6%)

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