There are strong signs of growth and expansion in the Latin American hospitality sector, says Lodging Econometrics (LE), a US-based hotel analytics firm, in its Q3 2024 Latin America Construction Pipeline Trend report. 

According to the report, the total construction pipeline at the close of Q3 2024 encompasses 642 projects with 104,513 rooms, marking significant increases of 11 pc in project count and 10 pc in room count compared to the previous year.

LE says that the construction pipeline across Latin America is experiencing upward trends at each developmental stage. The report details that projects currently under construction stand at 269, covering 47,151 rooms, a 10 pc rise from Q3 2023 in both project count and room volume. 

Projects scheduled to start construction in the next 12 months have also increased, with 183 projects with 30,184 rooms, reflecting growth of 7 pc in projects and 9 pc in rooms year over year. 

The statement adds that early planning stages reflect a 17 pc increase in projects with 190 total and an 11 pc rise in rooms with 27,178 total from the previous year.

The report also provides a comprehensive look at pipeline distribution by chain scale. Upscale hotels top the list, with 134 projects accounting for 18,592 rooms. 

Luxury projects follow closely, with 121 projects contributing 24,924 rooms, while the upper-upscale category has 104 projects with 21,300 rooms. 

According to the report, this spread highlights Latin America’s focus on the upscale and luxury markets, indicating continued investment in higher-tier accommodation options.

Mexico and Brazil are the two most active countries in the region for hotel construction. Mexico leads with 229 projects and 35,975 rooms, while Brazil follows with 103 projects and 15,731 rooms. 

Combined, these two countries represent 52 pc of the total project count and 50 pc of total room count for the region. The Dominican Republic follows with a record-high 59 projects, representing 14,407 rooms, while Colombia has 27 projects and 3,671 rooms.

The report says that the cities with the highest pipeline activity include Mexico City in Mexico, which has 23 projects totalling 2,761 rooms, Georgetown in the US with 13 projects with 1,800 rooms, São Paulo in Brazil with 12 projects with 2,559 rooms, Peru-capital Lima with 12 projects with 1,914 rooms and Riviera Maya in Mexico with 12 projects with 1,421 rooms.

LE says that Q3 2024 saw a flurry of activity with 50 new project announcements, totalling 9,775 rooms, as well as the commencement of 27 construction projects. 

The reports adds that 49 new hotel openings, representing 9,688 rooms, were completed in the first three quarters. LE anticipates further growth in Q4 2024, with an estimated 42 additional hotels and 5,661 rooms expected to open, bringing the total for 2024 to 91 new hotels with 15,349 rooms.

LE’s forecast indicates sustained growth for the region’s hospitality industry in the coming years. In 2025, 108 new hotels with 19,551 rooms are expected to open, with further expansion in 2026 projected to bring an additional 138 hotels and 19,513 rooms.

The Q3 2024 LE report underlines Latin America’s hospitality industry resilience and growth potential, marked by robust pipeline expansions across multiple regions and chain scales. 

With substantial investments in luxury and upscale segments, as well as strong pipeline activity in Mexico and Brazil, the region is well-positioned for further development and innovation in the coming years.