Latin America — The Punta Cana market in the Dominican Republic leads the Latin American hotel construction pipeline, according to the latest data from Lodging Econometrics.
Punta Cana currently has 24 projects and 7,993 rooms under construction. The Mexican city of Guadalajara comes in second with 22 projects and 2,741 rooms, and Mexico City comes in third with 21 projects and 2,353 rooms. Two other Mexican markets round out the top five: Cancun (16 projects and 6,381 rooms) and Monterrey (13 projects and 2,036 rooms).
LE analysts said Punta Cana’s top ranking over other Mexican markets highlights the Caribbean’s attractiveness as a destination for large-scale hospitality investment. The analysts said the stark contrast in room numbers between Punta Cana and Cancun suggests an emphasis on large resort projects in tourist destinations, while urban areas tend to see smaller developments, although projects are on the rise.
Cancun leads the way in terms of number of projects currently under construction with nine projects and 4,463 rooms, followed by Lima, Peru with seven projects and 1,173 rooms. Three Mexican markets round out the top five: Mexico City with seven projects and 731 rooms, Los Cabos with six projects and 742 rooms, and Monterrey with five projects and 1,027 rooms.
LE analysts said the category offers insight into nearer-term market growth, with Cancun leading the way in both project and room counts. The differing ratios of rooms to projects for the top five hotels point to diverse development strategies, from large resorts in Cancun to boutique hotels in urban areas like Mexico City, the analysts said.
Punta Cana also leads the way as an upcoming development hotspot, with 20 projects and 4,104 rooms scheduled to begin construction or are in the early planning stages within the next 12 months. Other Mexican markets rounding out the top five are Guadalajara, Mexico City, Riviera Maya and Monterrey.
Through June 2024, the Latin America region had 145 projects and 28,256 rooms in some stage of renovation or rebranding. Mexico City led the way, with San José, Monterrey, Cancun and San Juan rounding out the top five. These five cities accounted for approximately 20% of the projects and rooms under renovation or rebranding.
Latin America is expected to see 101 hotels and 18,381 rooms opening by 2024. Cities projected to see the most hotel openings in 2024 include Santo Domingo, Mexico City, São Paulo, Mazatlán and Lima.
Previous Accommodation Econometric Report
In late June, we told you why Dallas still leads the U.S. construction pipeline.
In mid-June, we discussed how much of Europe’s pipeline is still under construction.
In late May, we discussed the APEC (Asia-Pacific excluding China) pipeline.
In mid-May, we discussed our burgeoning pipeline in Latin America.
In mid-May, we discussed plans to build a hotel in Canada.
