In an increasingly tight real estate market, more and more investors are finding value in adapting obsolete buildings.
The Central/South America region reported 21,937 rooms in construction as of July 2019, which is a 7.1% year-over-year decrease.
According to the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline is in its third year of decline by rooms and has 710 projects/123,392 rooms. 710 projects is the lowest number of projects in the pipeline since the fourth quarter of 2013.
Approximately $830 million of hotels transacted across the country in the first half of the year, pacing 4% above comparable levels in 2018 ($800 million). Download the Mid-Year Transaction Report which includes an analysis of year-to-date trading activity.
As apps like Uber Eats rise in popularity, hotel guests are opting for smaller rooms in the heart of the city with less on-site perks.
Despite the total commercial real estate investment in Europe declining 7.8% year-on-year in the twelve months to Q2 2019, hotel investment saw an increase of 5.3% over the same period, totaling 24.3bn, according to the latest data from global real estate advisor, CBRE.
The Asia/Pacific region reported 470,650 hotel rooms in construction as of July 2019, which is a 27% year-over-year increase.
The Caribbean/Mexico region reported 31,968 hotel rooms in construction as of July 2019, which is a 33.9% year-over-year increase.
The number of hotel rooms in construction in Europe rose 52.4% to 192,352 rooms in July, according to STR pipeline data.
According to STR pipeline data for July, the U.S. reported 205,992 hotel rooms in construction, which is an 8.3% year-over-year increase.