Latin America experienced a positive growth trajectory in its hotel construction pipeline in the second quarter, with new hotel openings expected to see stable growth through 2026, a latest report by Lodging Econometrics (LE) has revealed.
This projected growth is supported by the market’s expanding construction pipeline, which currently totals 612 projects (97,597 rooms), marking an 11% lift in projects and a 10% increase in rooms YOY.
At the end of the second quarter, projects under construction jumped 11% YOY in projects and 15% in rooms to total 253 projects with 44,319 rooms across the region. Additionally, projects expected to start construction in the next 12 months stood at 187 projects/29,476 rooms, rising 18% by projects and 17% by rooms YOY, while projects in the early planning stage increased by 3% YOY to total 172 projects/23,802 rooms.
Key chain scale segments included the upscale segment with 133 projects/18,807 rooms; the upper upscale segment with 101 projects/20,234 rooms; and the luxury segment with 96 projects/17,154 rooms.
Renovations and conversion projects touched an all-time high of 186 projects/29,500 rooms, representing a 30% YOY surge in projects and an 11% increase in rooms.
Countries with the highest number of projects:
- Mexico: 226 projects/33,599 rooms
- Brazil: 93 projects/13,911 rooms
- The Dominican Republic: 51 projects/12,695 rooms
- Colombia: 27 projects/3,671 rooms
Top cities with the largest pipelines:
- Mexico City: 22 projects/2,467 rooms
- Georgetown: 15 projects/2,089 rooms
- Sao Paulo: 12 projects/2,559 rooms
- Lima: 12 projects/1,914 rooms
- Riviera Maya: 12 projects/1,421 rooms
New projects announced during the second quarter soared by 32% to stand at 62 projects/8,740 rooms.
A total of 40 new hotels (totaling 8,730 rooms) opened across the region in the first six months of the year. An additional 60 new properties (representing 8,825 rooms) are projected to open in the rest of the year, LE. A total of 100 new hotels with 17,555 rooms will open by the end of the year.
In 2025, there will be a steady increase in new openings, with 111 new projects/18,816 rooms projected to open, according to LE. This will further rise to 131 new hotels with 18,293 rooms in 2026.
