The hotel sector in Brazil is experiencing a boom, despite a number of difficulties. Grupo HG is paving new ways for international brands to invest on opportunities available. As the hotel industry is witnessing a face lifting time worldwide, the hotel and lodging sector in Brazil is also recovering from economic downturn and emerging stronger than it was previously. The local economy is boosted up, and occupancy and RevPAR are both up in properties across the country. Around one hundred and twenty new properties are presently in the development pipeline over the next four years.
The future of the hospitality industry is looking bright in the fifth largest country of the world. Boasting a coastline, stretching for 7,490 miles, salubrious weather, the sixth largest number of world heritage sites in the world makes Brazil a prospering eco-tourism sector. Moreover, the bio-diverse rainforests and breathtaking scenic beauty also makes Brazil an attractive investment proposition. In addition, when proper improvements of infrastructure are made for 2014 World Cup and 2016 Olympics, the place becomes even more persuasive. This is evidenced by brands such as InterContinental, Accor and The Blue Tree Group.
Grupo HG, the Brazilian hotel management and investment group is making significant investment in the hospitality domain of the country. Launched in 2007, the company is lately managing five plush properties and currently, it has added an additional company to its portfolio, which includes the famous Hotel do Frade, which will undergo a $200 million renovation and expansion and will be rebranded as the Frad.e Hotel and The Blue Mountain Hotel in Campos do Jordao.
One of the prime aims of Grupo HG growth plan over the next few years is to pave the way for the smooth entry of international hotel brands in the Brazilian market through proper partnerships and joint ventures. According to Grupo HG CEO and owner Roberto Jeolas, it the most favorable time for investment in the Brazilian hospitality market for both short and long term. He added that he has witnessed many investors coming to the region, but failed invariably, not due to the dwindling market condition, but because they did not have the local expertise required.
It is true that a successful investment in Brazil is bit tricky, due to language problem, unique geographical position and a delicate business culture. With a strong infrastructure, which includes a central reservation portrayal, an effective inbound/outbound sales team, a well established development, operations and management team, the Grupo HG is trying to offer the international eminent brands, the ideal vehicle, to tread into the Brazilian market, while limiting their risk.