€4 billion of investment to make Brazil’s hotel sector boom as some establishments report 98% occupancy

bedroom interior design with decorative tea set and dessert on bed

Brazil’s hotel sector is set to experience a significant boom, as research from the Brazilian Association for Hotels (FOHB) reveals that investment in the sector is expected to reach €4 billion over the coming years. The current capacity of 94,000 rooms is expected to rise substantially, to reach 164,000 rooms by 2020. Employment will also enjoy a significant boost, with the current 64,000 hotel sector jobs expected to reach 100,000 by 2020.

The Olympic Games and Paralympic Games being held in Brazil this year are expected to boost interest in travel and tourism within Brazil not just during 2016 but also in the following years. Domestic tourism in Brazil is also on the rise, with 86.4% of Brazilians planning to take a domestic break this year, according to figures from the Ministry of Tourism’s Consumer Survey – Travel Intent.

The hotel sector is proactively seeking to plan for this increased demand. The focus is not just on expanding the number of rooms, but also on opening up parts of Brazil outside of the major cities, with tourists increasingly interested in seeing more of this fascinating country.

According to the FOHB study, which was commissioned by the Ministry of Tourism, 59% of Brazil’s hotels are currently in major cities. As well as adding to the offering in the largest urban areas (top hotels in Rio reported 98% occupancy over the New Year period), there is a need to boost the availability and type of hotels in towns and cities with fewer than 1 million residents.

Miller Reis, Sales Director of leading developer Ritz-G5, which is developing a range of projects in the northeast of Brazil, explains,

“As interest from tourists in Brazil grows, we’re seeing increasing demand for access to the ‘real’ Brazil. Visitors love the pace and excitement of the big cities like Rio and São Paulo, but they also want to see what else Brazil has to offer. As such, we’re seeing a spike in demand for branded, western-style hotels in places like Natal, in the northeast of the country.”

The Accor Group is one brand looking to expand their Brazilian presence. The four star Mercure Natal will be in one of Natal’s most fashionable neighbourhoods, Ponte Negra. Visitors will be able to enjoy easy access to the city’s glorious beaches, as well as its extensive offering of shops, restaurants and nightlife. When relaxing back at the hotel, they can enjoy the private swimming pool and 24 hour concierge.

The Grande Mercure Piramide Natal, in a secluded setting on the beach by Parque das Dunas, offers the ultimate fun and relaxation for those who love the water. As well as its stunning beachfront setting, the four star hotel, currently under renovation and due to open in 2016, will include five swimming pools, a swim-up bar, a water park and a spa tub.

Between them, the two hotels will add 567 branded rooms to Natal’s hotel sector, providing both domestic and international visitors with luxurious accommodation options from which to experience this beautiful city.

For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.

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