Investment in hotels for FIFA Cup amounts to US$ 1.4 billion
Folha de S. Paulo
With eyes aiming at 2014, when Brazil will host the FIFA World Cup, the hotel sector foresees investing R$ 2.4 billion (US$ 1.4 billion) in the construction of 92 new establishments in the 12 cities that will host the competition. The numbers, part of a study made at the request of Folha by Jones Lang LaSalle Hotels, can still increase substantially.
São Paulo so far, for example, has only the renew of a 126-room hotel planned. The 2008 post-crisis recovery caused the city to attract the attention of investors and increase the occupancy rates of hotels. "At times of growth, people travel more, companies take employees to trainings and that is taking place in São Paulo", says Chieko Aoki, President of Blue Tree chain.
The chain wants to get installed in Rio and it seeks land in the South side or in Barra da Tijuca (West side). Projections made by the ABIH (Brazilian Association of the Hotel Industry) based on estimates and registered projects show an even broader expansion. Nevertheless, there are cities in which the perspectives are modest. "Cities like Curitiba already have a consolidated hotel chain and they would not have room for a large number of projects", says Enrico Fermi, President of the ABIH.
The decision of installing a new hotel takes into account the potential for economic growth and the projected increase in the demand. "The FIFA World Cup is a 45-day event, but the investment made in a new hotel pays off in ten years", explains Rafael Guaspari, vice President of Development of Atlântica Hotels. The group foresees investments between R$ 200 million (US$ 117.7 million) and R$ 250 million (US$ 147.1 million) on 12 new hotels. The projects of the sector bet in the segment of business travel and in the growth of the domestic market, focused on affordable hotels and midsize undertakings. Accor has 23 new hotels in cities that will host the FIFA World Cup with investments of R$ 522.5 million (US$ 307.4 million).
According to Peter Vader, President of BHG, the third largest hotel chain in the country, São Paulo, Rio de Janeiro, Belo Horizonte and Fortaleza are the most attractive cities. The plans of the company in the coming years include investments of R$ 300 million (US$ 176.5 million) with equity capital, besides nearly R$ 400 million (US$ 235.3 million) in financing for the construction of 40 hotels. The list includes host cities of the Cup and midsize cities. According to Guaspari, the guidelines provided by FIFA by means of the consulting firm Match is that cities need to have a number of beds equivalent to 30% of the stadium. In an arena of 60 thousand seats, that would mean having 18 thousand beds. Each room has, on average, two beds, so 9,000 rooms would be required.