An ambitious wave of new hotel construction is sweeping through Argentina as investors large and small tap new opportunities to buy, build and own.
“Argentina’s Hotel Sector Proving Its Investment Potential” is the headline of a detailed analysis in the Real Estate supplement of today’s Ambito which points to the most recent long holiday weekend (1.3 million tourists spending US$240 million) as ample incentive for hotel developers to launch new projects in Argentina.
Currently there are 616 hotels in Buenos Aires, 13,269 hotels in Argentina and 596,624 hotel beds nationwide, but many of the hotels in the country’s interior are outdated non-chain properties lacking modern amenities. Hence, the new wave of hotel investments is centered on three and four-star properties in the US$3 million to $6 million range geared toward foreign visitors and Argentines whose staycation numbers have surged in the past eighteen months.
In terms of advantages, Argentina hotel sector analyst Noel Verger tells Ambito: “The hotel sector presents a type of real estate investment that offers legal security, a tangible asset and a vehicle for participating in the business. Plus the annual returns on hotel investments made with national and international chains can be superior to other types of real estate investments.”
Argentina currently has 170 hotel chain properties with another 44 under construction nationwide. 80% of hotels being built in Argentina today are chain properties reflecting local demand for the branding, consistency and quality that such hotels offer. The country also has 30 wine hotels reflecting the recent boom in wine tourism fueled by Malbec-mania. (Full Story in Spanish)
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