The Brazilian Hotel Sector - April 2015

INTRODUCTION
 KEY FINDINGS
DATA SOURCES
OVERVIEW
 OUTLOOK FOR TOURISM ARRIVALS
Figure 1: Tourist arrivals* in Brazil, 2009-18
 INCOMING ARRIVALS
Figure 2: Incoming arrivals by region and country, 2012-13
 OUTLOOK FOR SPENDING ON TRAVEL AND TOURISM IN BRAZIL
Figure 3: Forecasted growth in spending on travel and tourism in Brazil, 2013-20
 HOTEL AND LODGING CAPACITY
Figure 4: Tourist accommodation establishments* in Brazil, 2009-18
 HOTEL CAPACITY
Figure 5: Hotel capacity in Brazil by region and state, 2012-13
Figure 6: Change in hotel capacity in Brazil by region and state, 2012-13
HOTEL PERFORMANCE
 BRAZIL
Figure 7: Hotel* performance in Brazil, in US Dollars, 2013-14
Figure 8: Hotel* performance in Brazil, in Brazilian Reals, 2013-14
 RIO DE JANEIRO
Figure 9: Hotel performance in Rio de Janeiro, in US Dollars, 2013-14
Figure 10: Hotel performance in Rio de Janeiro, in Brazilian Reals, 2013-14
 SÃO PAULO
Figure 11: Hotel performance in São Paulo, in US Dollars, 2013-14
Figure 12: Hotel performance in São Paulo, in Brazilian Reals, 2013-14
 RIO DE JANEIRO VERSUS SÃO PAULO
HOTEL CHAINS IN BRAZIL
Figure 13: Hotel companies in Brazil, 2014
Figure 14: Hotel brands ranked by number of properties in Brazil, 2011-14
 HOTELARIA ACCOR DO BRASIL S.A.
Figure 15: Federal states and cities where Accor hotels are located, 2015
Accor purchased Grupo Posadas portfolio
Brands
Ibis Styles début
ibis pipeline
Figure 16: Planned openings of ibis hotels in Brazil during the first half of 2015
Three new hotels in Recife
 CHOICE HOTELS INTERNATIONAL, INC.
Figure 17: Choice's brand portfolio in Brazil, end 2013
Quality Hotel Petrolina
Atlantica hotels
Atlantica acquired
Strong pipeline
 HOTEL NACIONAL INN CAMPINAS LTD
Figure 18: Hotel Nacional Inn's portfolio by location, 2015
 LOUVRE HOTELS GROUP/BRAZIL HOSPITALITY GROUP (BHG)
Brazil Hospitality Group (BHG)
BHG’s hotel portfolio
Figure 19: Distribution of BHG’s hotel portfolio by region, 2013
Figure 20: Brazil Hospitality Group's hotel portfolio, 2014
Chain expansion and development
Over 14,000 rooms by end 2016
Hotel school launched
Brands
Figure 21: BHG’s hotel portfolio by segment, 2013
BHG’s client profile
Figure 22: BHG’s guest profile, 2013
Distribution channels
Figure 23: Breakdown of BHG’s distribution channels, in %, 2013
Stronger results in 2013
 BLUE TREE HOTELS & RESORTS DO BRASIL S/A
Figure 24: Blue Tree’s hotel portfolio by region, city and state, 2015
 TRANSAMÉRICA HOSPITALITY GROUP
Figure 25: Transamérica Hospitality Group’s hotel portfolio, 2015
 BEST WESTERN INTERNATIONAL
Figure 26: Best Western’s hotel portfolio in Brazil, 2015
 WYNDHAM HOTELS & RESORTS
Figure 27: Wyndham's hotel portfolio in Brazil, 2015
 INTERCONTINENTAL HOTELS GROUP PLC
Figure 28: IHG's hotel portfolio in Brazil, 2015
 GRUPO POSADAS
 CARLSON REZIDOR HOTEL GROUP
Figure 29: Carlson's Brazilian hotel portfolio, 2015
Carlson takes back Radisson brand development for Latin America
 STARWOOD HOTELS & RESORTS WORLDWIDE, INC
Figure 30: Starwood Hotels & Resorts’ portfolio in Brazil, 2015
 MARRIOTT HOTELS & RESORTS
São Paulo Airport Marriott to expand
CURRENT DEVELOPMENTS IN THE BRAZILIAN HOTEL INDUSTRY
 THE EXPANSION OF HYATT
Grand Hyatt Rio de Janeiro
Brazil’s first Park Hyatt
Hyatt’s joint venture for Hyatt Place hotels in Brazil
Three new hotels in the pipeline
Hyatt Place Sorocaba
Hyatt Place Macaé
 RED ROOF INNS TO ENTER BRAZIL
Nobile Hoteis
Brands
Pipeline
Figure 31: Nobile’s active pipeline of hotel projects, 2015
 BSH INTERNATIONAL
HOTEL DEVELOPMENT OPPORTUNITIES
Figure 32: Secondary or tertiary cities with populations of between 80,000 and 1,000,000, 2014
Figure 33: Geographical dispersion of secondary and tertiary cities identified by Horwath, 2014
Figure 34: Hotel supply situation in secondary and tertiary Brazilian cities, 2014
HOTEL FINANCING IN BRAZIL
 A SEVERE LACK OF DEBT FINANCING
 THE CONDO STRUCTURE
Conflict of interest in the condo-hotel model
URBAN LUXURY HOTELS
Figure 35: Defining characteristics for luxury hotels in Brazil, 2014
Figure 36: Urban luxury hotel pipeline in Brazil, 2014
WHAT NEXT?
 OLYMPICS UNLIKELY TO LIVE UP TO EXPECTATIONS
 ECONOMY SLOWING DOWN
Figure 37: Brazil's GDP growth rate in local currency terms, 2013-16
Figure 38: Brazil’s GDP, 2011-19
Currency weakening – A silver lining?
Figure 39: Forecasted exchange rate BRL/USD, 2011-19
Figure 40: Forecasted exchange rate BRL/USD, 25/02/2015
 HURDLES TO BE OVERCOME
High prices
Pipeline