Brazil - a hot spot for counter-cyclical hotel investment, reports Jones Lang LaSalle Hotels

Jul 31, 08 | 1:57 am

Jones Lang LaSalle Hotels published a reports that analyzes the largely underserved hotel market in Brazil. The country's strong domestic demand is boosting hotel fundamentals, and creating an abundance of investment opportunities.

"Brazil is one of the few countries in the world with a growing economy and it has received an investment grade rating from S&P and Fitch.  As a result, foreign investment in Brazil is poised for growth, and the market is becoming increasingly attractive to institutional and private equity investors. The hotel sector will benefit from the growing economy and the increased inflow of foreign capital," said Arthur Adler, managing director and CEO-Americas, Jones Lang LaSalle Hotels.

"Brazil has been insulated from the economic slowdown felt elsewhere in the world. Investing in Brazil's hotel real estate presents a countercyclical investment opportunity compared to the U.S. and Western Europe," said Kristina Paider, senior vice president of research and marketing for Jones Lang LaSalle Hotels.

"Brazil's tourism ministry predicts that the number of international tourists will nearly double by 2010. The government's $235 billion investment program, targeting improvements in roads and airports, will address infrastructure bottlenecks and in turn, make tourism more attractive. Additionally, Brazil's exposure as host to the 2014 FIFA Soccer World Cup will stimulate increased touch points for most of the world," Paider said.

"New hotel development presents the main opportunity for investors as there is little product to buy, and the mid-market and budget sectors in secondary markets are particularly robust," said Ricardo Mader, a new executive vice president for Jones Lang LaSalle Hotels in Brazil. "Brazil has a total of 40 cities with more than one million residents; 14 of which are metropolitan areas, all with a limited supply of rooms compared to cities of similar population in the U.S. or Western Europe."

A co-author of this report and premier hotel advisor in Brazil, Mader, along with eight top hotel specialists, recently joined Jones Lang LaSalle Hotels in Sao Paulo. Mader was a former partner of Hotel Investment Advisors (HIA). His team was the first in Brazil to offer specialized consulting for hotel companies planning to expand or establish a presence in Brazil, Chile, Argentina and throughout South America.

To receive a copy of Jones Lang LaSalle Hotels' Hotel Intelligence: Brazil, visit www.joneslanglasallehotels.com or www.jllhss.com.

 
About Jones Lang LaSalle Hotels

Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide both the depth and breadth of advice required by hotel investors and hotel companies, through a robust and integrated local network. In 2007, Jones Lang LaSalle Hotels provided sale and purchase advice on 259 hotel transactions globally; representing a combined value of US$13.9 billion, a total of 54,763 hotel rooms in 84 cities. In addition advisory and valuation services were provided on 660 assignments globally for 182,048 rooms across more than 300 cities.

The global team comprises over 270 hotel specialists, operating from 31 offices in 18 countries. The firm's advice is supported by a dedicated global research team, which produced over 45 publications in 2007 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com