Attrition high in Brazil’s hotel pipeline
STR recently analyzed the pandemic impact on hotel development in Southern Cone countries. Brazil’s southern states also sit within that cone, but rather than limit the analysis, we looked at the pipeline for all of Brazil.
Brazil shows a considerable amount of rooms in the pipeline, 16,808 to be exact, but 5,349 rooms in the pipeline have been abandoned this year.
At the time of writing, 9,491 of those rooms in the pipeline were in construction, according to STR’s AM:PM. While rooms already under construction are likely to be completed, uncertainty around the pandemic means there will likely be more attrition in the planning phases.
Upscale and Upper Midscale projects represent the highest number of rooms in the pipeline at 160,683. Luxury/Upper Upscale hotels rank second with 59,213 new rooms in the pipeline. At the same time, Brazil’s Midscale/Economic segment represents 55,517 new rooms in the pipeline.