The hotel sector is booming in Brazil despite the difficulties inherent with doing business in what is a relatively remote country with a substantial economy. Grupo HG are paving the way for international brands to capitalize on the opportunities available.
As the hotel industry recovers worldwide, albeit in increments, Brazil stands out as a country where the hotel and lodging sector has not only weathered the economic storm with minimal damage, but come out stronger than it was previously. The local economy is strong, occupancy and RevPAR are both up in properties across the country, and over one hundred and twenty new properties are in the development pipeline over the next four years.
The future is looking more than bright for the hospitality industry in the world’s fifth largest country, and it’s understandable. With 7,490 miles of coastline, warm weather, the sixth largest number of world heritage sites in the world (source: UNWTO) and a booming eco-tourism sector thanks to its bio-diverse rainforests and outstanding natural beauty, Brazil is already an attractive investment proposition. When the infrastructure improvements being made for the 2014 World Cup and 2016 Olympics are added to the mix, it becomes even more persuasive. This is evidenced by brands such as InterContinental, Accor and The Blue Tree Group to name but three all increasing their investment in the market, both in preparation for the World Cup and the Olympics and due to the ever more positive performance they have seen over the last few years.
Another company that is investing heavily in the market is the Brazilian hotel management and investment group Grupo HG. Established in 2007, the company currently manages five luxury properties and has signed an additional five to their portfolio this year including the renowned Hotel do Frade which will undergo a $200 million refurbishment and expansion this year and be rebranded as the Frad.e Hotel and The Blue Mountain Hotel in Campos do Jordão. In addition, they have established a private placement fund to support new economy hotel developments across the country.
One of the focal points of Grupo HG’s growth plan over the next decade is to facilitate the entry of international hotel brands into the Brazilian market through partnerships and joint ventures. “There has never been a better time to invest in the hospitality market in Brazil. It’s the ideal opportunity for those looking for substantial returns on their investment both short and long term.” says Grupo HG CEO and owner Roberto Jeolas. He adds, “We have seen too many investors come to the region and fail however; not because the market isn’t strong, but because they didn’t have the local expertise required.”
It’s true that doing business in Brazil can be tricky to say the least for international brands due to a substantial language barrier, relatively distant geographical positioning from other large economies and a unique and delicate business culture that has evolved over nearly two decades of self-sufficiency as a country. With a solid infrastructure which includes a central reservations portal, an inbound/outbound sales team, a fully established development, operations and management team and access to investors, Grupo HG addresses these issues and offers international brands the ideal vehicle through which to enter the Brazilian market while limiting their risk.
To find out more about HG Luxury Hotels & Spa and how they can assist, contact Roberto Jeolas, CEO Grupo HG. Mail: email@example.com; cell: 55 11 7727 0042.
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