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News release

Sao Paulo

Brazilian Resort Market Continues Robust Upward Growth Trend

Jones Lang LaSalle Hotels’ study reports 25 percent uptick in total gross revenue for Brazilian resort hotels, and continued growth in occupancy rates


Nov. 19, 2012 – The Brazilian resort hotel market is reaping the benefits of Brazil’s stabilizing economy, as resort fundamentals in 2011 surpassed peak performance levels in 2008. In Jones Lang LaSalle Hotels annual, bi-lingual research study, Resorts in Numbers – Brazil 2012 , touts that total gross revenue for resorts rose by 25 percent in 2011 over 2010, reaching $136,988 per available room, surpassing the previous peak in 2008 at $117,577. Brazil resorts witnessed a 9 percent increase in occupancy rate, achieving 50 percent in 2011 and nearly reaching country’s previous 2008 peak of 51 percent. Total revenue per occupied room reached R$683 in 2011, a nearly 11 percent increase over 2010. The current resort market in Brazil includes 103 properties, encompassing nearly 24,000 rooms.

“Following Brazil’s economic decentralization and an increase in average net income, the resort sector was poised for real transformation and growth, which we are now witnessing,” said Ricardo Mader, Executive Vice President for Jones Lang LaSalle Hotels in São Paulo. “Brazil’s rising middle class has brought a host of new leisure travelers to the domestic tourism industry and is boosting the performance of the resort sector. In 2011, for the first time in the country’s history, more people in Brazil traveled on airplanes than on buses. This may seem like a nominal feat but considering Brazil's past economic state it speaks to the GDP growth of the country, and the way its citizens view the local tourism market.”

International travel for Brazilians is nearly 20 percent more expensive than in previous years. The government has increased the tax on foreign currency credit card transactions to 6.38 percent. Additionally, the appreciation of the dollar against Brazilian real, which strengthened and now stands at over R$2.00, has resulted in Brazilian trips abroad being substantially more costly, making domestic travel increasingly attractive to locals.

Major nearby South American countries diminishing economic stability combined with the European countries financial struggles have continued to affect inbound travel to Brazil. The proportion of resort rooms rented by foreigners decreased by 5.2 percent, from 12.3 percent in 2010 to 7.1 percent in 2011 Manuela Gorni, Executive Vice President of Jones Lang LaSalle in Sao Paolo added, “As Brazilians are traveling more within the country, we’ve seen it balance the resort market that witnessed decreased international visitors.”
Brazil resorts are seeing group demand make up more than a third of the resort market mix, followed closely by tour operators, and transient business/leisure demand. “We expect these segments to remain the business drivers through 2012,” added Gorni.
“All factors combined, the low supply growth of resorts in Brazil should continue to underpin the performance fundamentals of existing properties,” said Clay Dickinson, Executive Vice President of Jones Lang LaSalle Hotels. “In 2011, resort room supply grew by a moderate 3.67 percent over 2010 levels, and there is no expected new supply increases over the next three years, resulting in  strong occupancy and gross revenues in the coming years.”
Jones Lang LaSalle Hotels’ Resorts in Numbers – Brazil 2012 covers historic performance in the country’s resort market, serves as a benchmarking tool for both domestic and foreign investors and owners. To request a copy of the report, visit www.joneslanglasallehotels.com or www.jllhss.com.