According to STR Global, hotels in Brazil have seen revenue per available room decline as they prepare to host the FIFA World Cup, which began this week. The output of the nation is close to that of other host countries such as Germany and South Africa. sales qatar
Prior to the start of the World Cup, South Africa saw sharp drops in occupancy, owing to a rise in room supply and average daily rate growth. Due to lower occupancy levels in March and April, Brazil's year-to-date performance has dipped. Brazil has raised ADR, partially as a result of the Carnival, after experiencing low rates at the start of the year.
Since 2008, the overall supply pattern in Brazil has shown a compound annual growth rate (CAGR) of 1.0 percent. Since 2008, supply growth has been flat, and there have been no significant increases in the run-up to the World Cup or the Olympics. Following a positive pattern of growth for more than two years, Brazil has seen a decrease in demand since 2012.
Brazil had been able to reliably increase ADR without greatly affecting occupancy rates in previous years. Brazil's previous rise in ADR was largely motivated by rising inflation rates in previous years, which are currently at 6.4 percent.
Despite the country's historical supply expansion, the country's Under Contract Pipeline reported an additional 21% supply on top of existing supply, with 23,600 rooms expected to open by the end of 2015. The Economy, Midscale, and Upper Midscale classes collectively account for 69% of this growth. International hotel brands are expanding their portfolios in Brazil, with ventures focusing on smaller city destinations with substantial growth potential, rather than only major tourist destinations or big cities.
Global commercial investment increased by 13% in the third quarter compared to the previous year.
According to JLL, increased capital allocation levels into direct real estate helped drive global real estate investment volumes to $165 billion in Q3 2014, up 4% from Q2 2014 and 13% from Q3 2013. This has increased global 2014 year-to-date (YTD) volumes to $463 billion, up 23% from $378 billion in the first three quarters of 2013.
"Global commercial property markets continue to see elevated investor activity, with both prime and secondary opportunities drawing significant competition and interest from clients," said Arthur de Haast, JLL's Lead Director International Capital Group. "Given the amount of equity still sitting on the sidelines waiting to be deployed, overall volumes this year are on track to hit $700 billion, a level last seen in 2006."
JLL's Global Capital Markets Research Director, David Green-Morgan, said, "The recovery in occupier demand in 2014 continues to provide a positive tailwind for investment markets. Since the construction pipeline has been below average in recent years, rents have risen dramatically in areas where demand is high. This gives investors trust in the performance of their investments, encouraging them to invest in new opportunities."
The Americas are a continent that spans the globe.
The US, Brazil, and Mexico all saw strong growth in Q3 2014, with total volumes of $78 billion, up 16 percent from Q2 and 23 percent from Q3 2014. Volumes for the first half of 2014 totaled $207 billion, up 35% year over year.
Europe is a continent that has a
Volumes in Europe in the third quarter of 2014 totaled $56 billion, down 5% from the second quarter but still up 7% from the third quarter of 2013. Volumes for the first half of 2014 are up 26% in dollars and 22% in euros, bringing the total to $170 billion. Increased activity levels in more peripheral markets such as Central and Eastern Europe (up 35%), Benelux (up 56%), the Nordics (up 20%), and Southern Europe (up 20%) are supporting strong success in core markets such as France, Germany, and the United Kingdom (up 72 percent ).
Asia Pacific investment markets remained stable in Q3 2014, with $31 billion in value. Despite the fact that this sum is down 3% from Q2 2014, it is up 3% from Q3 2013, implying that the gap between 2013 and 2014 levels has narrowed, with 2013 YTD volumes of $86 billion just 4% behind last year. While the transactional markets in Australia and Japan have risen, YTD 2014 volumes in China are down 30% from 2013, but this is only temporary as global investor demand for Chinese real estate remains strong.