Consultancy Sees Opportunity in Colombia Hotel Market
A new report from Jones Lang LaSalle labels Colombia as "one of the most exciting and dynamic lodging markets in Latin America."
In recent years several top global brand have opened hotels, including the Bogotá JW Marriott and Hilton Bogotá, JLL notes. Other hotel companies, including Starwood and Hyatt, are forming alliances with local developers to build a variety of properties, the consultancy reports.
The availability of hotel rooms in Colombia is still limited. The city's existing stock of international-grade hotels now comprises 39 properties, totaling approximately 5,400 rooms, with only four hotels with more than 250 rooms, according to Jones Lang LaSalle. But the inventory is expected to jump to approximately 6,800 rooms by 2015 with the opening of up to nine new hotels.
Key projects in development include a 168-room W Hotel, scheduled for a 2014 opening, and the 353-room Bacatá, a luxury hotel under development closer to downtown Bogotá. However, there are still only a few major projects planned, especially in the luxury market.
"Zoning restrictions and the complexity of financing and developing such large properties act as a natural barrier to entry, and accordingly, well-located and branded hotels of this nature should continue to benefit from strong demand," Jones Lang LaSalle says in the report.
This is interesting news and certainly reflects the reality of the Colombian market. I recently visited Colombia on a trade mission with Florida Governor Rick Scott and his economic development team, Enterprise Florida, and I can verify that there are signs of economic growth everywhere. After years of upheaval, the country is clearly on track to try to find ways to address pent up demand across all sectors, including hotels.
As Colombia continues to grow, I have no doubt that more and more international companies will recognize the opportunity in one of Latin America's most established economies.