Carlos Manzoni of La Nacion says that hotels, and specifically condo-hotels, are “the new boom” property for real estate investors in Argentina.
The article cites many of the same motivating factors outlined in our original prospectus: Argentina’s pro-tourism policies, relative affordability, quality of life and Brazilian demand for quality accommodations.
The Ministry of Tourism reports that US$1.82 billion was invested in Argentina hotel projects in 2010 and almost $200 million has been announced by major chains in the past month. Meanwhile neighboring Brazil with the 2014 World Cup and 2016 Olympics on the horizon desperately needs new hotel investment, according to a report from Ernst & Young. Today, with only 999 days until the Copa, that sounds like a tall order.
The same cost factors keeping hotel investors on the sidelines in Brazil are the same factors working in Argentina condo-hotel owners’ favor when Brazilians make vacation plans. Manzoni says Argentina’s affordability has created “a flood” of Brazilian tourists including a new wave of middle-class travelers choosing Argentina for hotels and restaurants that are more affordable than those at home in Brazil.
In addition to strong demand and annual returns double those of rental properties, Manzoni says condo-hotel investments in Buenos Aires and Argentina offer other advantages like flexibility, absentee ownership, the prestige of established brands and a monthly income stream derived from the hotel’s pool of rental properties. (Full Story in Spanish)
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