Changing Consumer Attitudes and Future Outlook for the Budget Hotel Industry in BRIC by BRICdata

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									                            Changing Consumer Attitudes
                            and Future Outlook of Budget
                            Hotel Industry in BRIC

                            Industry Forecast Report

                            Reference code: TT0019MR

                            Published: August 2012
BRICdata
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EXECUTIVE SUMMARY



1 Executive Summary
Brazil
Market size

     • The market size of Brazilian budget hotels increased from BRL2.6 billion (US$1.5billion) to BRL5.5
        billion (US$ 3.1 billion in 2011 growing at a CAGR of 20.76% during the review period. The sector is
        projected to grow at a CAGR of 18.65% over the forecast period from BRL6.6 billion in 2012 to
        BRL13 billion in 2016.
     • The volume of Brazilian budget hotels increased from 100,457 to 149,228 in 2011 growing at a CAGR
        of 10.40% in review period. The sector is projected to grow at a CAGR of 8.15% over the forecast
        period from 161,665 units in 2012 to 221,143 units in 2016. The increase in the volume of hotels can
        be attributed to the 2014 FIFA World Cup and the 2016 Olympic Games.
Trends

     • To meet the demands of the 2014 FIFA World Cup and the 2016 Olympic Games, the refurbishment of
        existing budget hotels is expected to be a key trend in the Brazilian hotel industry. This will prevent an
        oversupply of hotels, which are already in high demand due to the rising popularity of condominium
        hotels.
     • The emergence of branded international budget hotel chains is likely to become a significant trend. It is
        expected to increase the standards of the Brazilian hotel industry and its counterparts throughout
        South and Central America.

     • The budget hotel industry is expected to enter a period of consolidation as refurbishment and the entry
        of branded hotel chains are expected merge with domestic chains.
Drivers

     • The 2014 FIFA World Cup an
								
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