As they gear up for the 2014 FIFA World Cup and the 2016 Summer Olympic Games, Brazil’s Ministry of Tourism and the Brazilian Development Bank (BNDES) are looking to refresh the country’s hotel inventory with a 1-billion Brazilian reais (US$544.5-million) line of credit for property refurbishment, expansion and ground-up construction.
But unlike the development booms that typically precede other major world events, Brazil’s will likely focus on its existing supply—not new builds, according to advisors and developers who work in and have studied the region closely.
The main reason? Oversupply.
“We already have lots of rooms in the big cities of Brazil. … what we most need is renovation of the existing hotels,” said Diogo Canteras, managing director of HVS in Brazil.
According to STR Global, there are 1,316 hotels comprising 167,035 rooms in the country, thanks in part to a surge in condo-hotel development in the 1980s and 1990s. The result has been a market weighed down by too much product, yielding average daily rates that are half that of other major countries and markets within the Americas. In January 2010, for example, the country posted an ADR of US$95.55, compared with Argentina (US$165.92), Costa Rica (US$172.73), Puerto Rico (US$192.90) and Venezuela (US$147.98).
But it’s not just oversupply that plagues the industry, Canteras said. Age is an equally debilitating factor. “The average age of a hotel is 30 years. … They really deserve a good renovation.”
Nowhere is that more true than the mid-market, which represents the majority of Brazil’s existing supply.
“I see the refurbishment much more focuses on the mid market,” Canteras said. “… They have depreciated a lot during these last years, and with some renovation you can better position this property from a mid-market property to an upper, mid-market segment (property).”
Renovations sought through the new line of credit will do more than provide a face lift; they’ll help propel the Brazilian hotel industry toward the standard of its counterparts throughout South and Central America, said Rogerio Basso, practice leader of Latin America for Ernst & Young.
“It’s certainly a move in the right direction to professionalize and enhance the standards and the quality of the lodging supply,” he said.
Friday, February 26, 2010
Tuesday, February 23, 2010
On the road to Rio For the 2016 Olympics
Travel agents don’t have to wait six years to sell their clients on Rio de Janeiro. The members of the Brazil Tour Operators Association are now offering some great deals to one of the most besutiful cities in the world.
And you can bet that North Americans will get a warm welcome as the people of Rio, the Cariocas, are still celebrating winning the Olympic bid for the summer games in 2016.
Spectacularly sited between towering mountains and lush natural parks and surrounded by turquoise water and miles and miles of white sand beaches, Rio is a feast for the eyes and the senses.
Americans come to this sophisticated city for its sizzling, non-stop nightlife, world-class dining and its infectious party atmosphere – and not just during Carnival.
Balmy breezes and the sounds of samba and pagode fill the air all year round. And then there are the beaches – 55 miles of them – with names like Ipanema, Copacabana, Saõ Conrado, Leblon and Barra.
This Cidade Maravilhosa, or marvelous city, is especially dramatic when viewed from the 1,300-foot Pão de Açúcar, Sugar Loaf Mountain.
Visitors have a choice of two cable cars or – for the very intrepid – climbing. Rising 2,330 feet above the city is Corcovado Mountain, with a 98-foot statue of Christ and another panoramic view of dramatic Rio.
Corcovado lies within the largest park in Rio, Tijuca National Park. In its 8,000 acres visitors can see armadillos, iguanas and marmosets. The 340-acre Botanical Gardens offers more manicured natural beauty with 5,000 species of flora, including Imperial Palms planted in the 1800s.
Visitors can opt for a quiet afternoon walking or cycling around picturesque Lagoa Rodrigo de Frietas.
The Carmen Miranda Museum is located in Botofogo and art lovers will enjoy the Museum of Contemporary Art in Niterói, designed by famed native son Oscar Niemeyer. Santa Teresa has some 50 artists showing their works out of the neighborhood’s 19th century homes.
The city has a well-deserved reputation for its excellent restaurants serving authentic regional food, traditional barbecue, fresh seafood and every international cuisine.
Read more
And you can bet that North Americans will get a warm welcome as the people of Rio, the Cariocas, are still celebrating winning the Olympic bid for the summer games in 2016.
Spectacularly sited between towering mountains and lush natural parks and surrounded by turquoise water and miles and miles of white sand beaches, Rio is a feast for the eyes and the senses.
Americans come to this sophisticated city for its sizzling, non-stop nightlife, world-class dining and its infectious party atmosphere – and not just during Carnival.
Balmy breezes and the sounds of samba and pagode fill the air all year round. And then there are the beaches – 55 miles of them – with names like Ipanema, Copacabana, Saõ Conrado, Leblon and Barra.
This Cidade Maravilhosa, or marvelous city, is especially dramatic when viewed from the 1,300-foot Pão de Açúcar, Sugar Loaf Mountain.
Visitors have a choice of two cable cars or – for the very intrepid – climbing. Rising 2,330 feet above the city is Corcovado Mountain, with a 98-foot statue of Christ and another panoramic view of dramatic Rio.
Corcovado lies within the largest park in Rio, Tijuca National Park. In its 8,000 acres visitors can see armadillos, iguanas and marmosets. The 340-acre Botanical Gardens offers more manicured natural beauty with 5,000 species of flora, including Imperial Palms planted in the 1800s.
Visitors can opt for a quiet afternoon walking or cycling around picturesque Lagoa Rodrigo de Frietas.
The Carmen Miranda Museum is located in Botofogo and art lovers will enjoy the Museum of Contemporary Art in Niterói, designed by famed native son Oscar Niemeyer. Santa Teresa has some 50 artists showing their works out of the neighborhood’s 19th century homes.
The city has a well-deserved reputation for its excellent restaurants serving authentic regional food, traditional barbecue, fresh seafood and every international cuisine.
Read more
Monday, February 1, 2010
Paraty or Parati, Brazil's Baroque Pearl of the Tropics
One of the most enchanting of all the old Portuguese colonial towns in Brazil, Paraty has been dubbed "a virtual museum in a tropical paradise" because of its blend of natural and architectural beauty.
Its grid of rough, cobblestone streets is lined with stark, white stone buildings decorated with brightly hued doors and window shutters. It's sandwiched between a backdrop of misty rainforest-encrusted mountains and sparkling seas graced with little yachts and schooners named after Pele and other famous Brazilian footballers.
You can hop on one of these boats, which will take you for a tour around the beautiful little islands nearby, but I prefer exploring the gorgeous town itself.
A small Indian settlement until the late 17th century, Paraty quickly grew in importance after the Bandeirantes, the Portuguese version of the Spanish conquistadors, stumbled across enormous gold deposits in the mountains of inland Brazil.
They needed somewhere from which to launch the booty back to Lisbon and Paraty, with its wide, curving harbour, fitted the bill.
It wasn't long before the rich began to construct lavish buildings and churches here and, four centuries on, Paraty still evokes something of a bygone feel - despite its smattering of souvenir shops, art galleries and cosmopolitan eateries.
If you visit, don't wear high heels and do think twice about hiring a bicycle to get around town. The rough and ready cobbled streets are challenging, to say the least.
To read more click here
and here
Its grid of rough, cobblestone streets is lined with stark, white stone buildings decorated with brightly hued doors and window shutters. It's sandwiched between a backdrop of misty rainforest-encrusted mountains and sparkling seas graced with little yachts and schooners named after Pele and other famous Brazilian footballers.
You can hop on one of these boats, which will take you for a tour around the beautiful little islands nearby, but I prefer exploring the gorgeous town itself.
A small Indian settlement until the late 17th century, Paraty quickly grew in importance after the Bandeirantes, the Portuguese version of the Spanish conquistadors, stumbled across enormous gold deposits in the mountains of inland Brazil.
They needed somewhere from which to launch the booty back to Lisbon and Paraty, with its wide, curving harbour, fitted the bill.
It wasn't long before the rich began to construct lavish buildings and churches here and, four centuries on, Paraty still evokes something of a bygone feel - despite its smattering of souvenir shops, art galleries and cosmopolitan eateries.
If you visit, don't wear high heels and do think twice about hiring a bicycle to get around town. The rough and ready cobbled streets are challenging, to say the least.
To read more click here
and here
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