REPORTS OF 98% OCCUPANCY AS €4 BILLION OF INVESTMENT SET TO MAKE BRAZIL’S HOTEL SECTOR BOOM

• 5% increase in current hotel capacity by 2020 (Brazilian Association for Hotels)
• Hotels in Rio de Janeiro reported 98% occupancy over the New Year period (Brazilian Association for Hotels)
• Accor Group expanding in Brazil starting with new 4* Mercure in Natal

Brazil’s hotel sector is set to experience a significant boom, as research from the Brazilian Association for Hotels (FOHB) reveals that investment in the sector is expected to reach €4 billion over the coming years. The current capacity of 94,000 rooms is expected to rise substantially by 74.5%, to reach 164,000 rooms by 2020.

The highly anticipated Olympic and Paralympic Games being held in Brazil this summer are expected to boost international tourism not just during 2016 but for many years to come. Similarly domestic tourism in Brazil is also on the rise, with 86.4% of Brazilians planning to take a domestic break this year, according to the latest figures from the Ministry of Tourism’s Consumer Survey.

The hotel sector is proactively seeking to plan for this increased demand, with a focus not just on expanding the number of rooms, but also on opening up beautiful regions of Brazil outside of the more traditional major city hotspots. According to the FOHB study, which was commissioned by the Ministry of Tourism, 59% of Brazil’s hotels are currently in major cities and therefore expanding outside of this is predicted to have a significantly positive impact.

As well as adding to the offering in the largest urban areas, with top hotels in Rio de Janeiro reporting 98% occupancy during the New Year period, there is a need to boost the availability and type of hotels offered in smaller towns and cities with fewer than 1 million residents.

Miller Reis, Sales Director of leading developer Ritz-G5, which is developing a range of projects in the northeast of Brazil, explains,

“We’re seeing an increasing demand for access to the ‘real’ Brazil. Visitors love the pace and excitement of the big cities like Rio and São Paulo, but they also want to see what else Brazil has to offer. Alongside this, people like brands in which they can trust and therefore we’ve witnessed a spike in requests for branded, western-style hotels in places like Natal, in the northeast of the country.”

One of the world’s leading hotel operators, the Accor Group, is one brand looking to expand their Brazilian presence. The four star Mercure Natal will be in one of Natal’s most fashionable neighbourhoods, Ponte Negra and visitors will be able to enjoy easy access to the city’s glorious beaches, as well as its extensive offering of shops, restaurants and nightlife.

When relaxing back at the hotel, they can enjoy the private swimming pool and 24 hour concierge service. Investment into Mercure Natal starts from just £110,000 for a 24m² suite, spread over 36 months and with a fixed 9% return per annum given on the full investment amount.

Alternatively, the Grande Mercure Piramide Natal, in a secluded setting on the beach by Parque das Dunas, offers the ultimate fun and relaxation for those who love the water. As well as its stunning beachfront setting, the four star hotel, currently under renovation and due to open in 2016, will include five swimming pools, a swim-up bar, a water park and a spa tub. Investment options for the Grande Mercure Piramide Natal are currently being finalised and will be released shortly.

Between them, the two hotels will add 567 branded rooms to Natal’s hotel sector, providing both domestic and international visitors with luxurious accommodation options from which to experience this beautiful city.