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  • Writer's pictureRealFacts Editorial Team

New Investors Enter Latin America Seeking Luxury Resort, Branded Residential Deals

A resort pool

As the allure of luxury real estate in Latin America continues to grow, new investors are flocking to the region, drawn by the promise of high-end developments and branded residences. The surge in luxury development, including boutique hotels and branded residential properties, has captured the attention of industry players seeking lucrative opportunities in this burgeoning market.

During a panel discussion at the Hotel Opportunities Latin America conference, industry experts shed light on the rising trend of luxury development and the increasing appetite for international brands in Latin America. Mario Carbone, Managing Director of Development for Mexico and Central America at Hilton, highlighted the influx of new players entering the boutique hotel sector, driven by private wealth groups and investors eager to tap into this niche market.

Exciting projects on the horizon include the Waldorf Astoria Guanacaste in Costa Rica and the Kimpton Seafire Resort and Spa in the Cayman Islands, underscoring the region's potential for high-end hospitality ventures.

Christian Glauser Benz, Head of Development for the Americas at Mandarin Oriental Hotel Group, echoed this sentiment, noting a growing interest from large sovereign funds in Asia and the Middle East to explore investment opportunities in Latin America. With renowned brands like Mandarin Oriental attracting attention from institutional investors, the region's luxury real estate market is poised for substantial growth.

Branded residences have emerged as a key component of many luxury developments, with nine out of ten projects now incorporating residential offerings. These branded condo sales support hotel development and provide a significant revenue stream, particularly in an environment of rising costs.

Ken Shannon, President of Leisure & Hospitality Design International, highlighted the trend of adding branded residences after the hotel is built, citing the quicker return on investment for owners. However, this approach comes with its challenges, including the need for adequate amenities and infrastructure to support residential components.

Despite these challenges, the appeal of branded residences remains strong, attracting buyers from Canada, New York, and beyond who seek a luxury experience with world-class services and amenities. By leveraging the allure of established hotel brands, developers can create unique and compelling offerings that cater to discerning buyers in the luxury real estate market.

As the demand for ultra-luxury resorts continues to soar, developers focus on wellness and food-and-beverage offerings to attract high-end clientele willing to invest significant sums in luxury experiences. With no limit to construction design, developers strive to create bespoke properties that redefine luxury living in Latin America.

In conclusion, the rise of branded residences presents a compelling investment opportunity in Latin America's luxury real estate market. As new investors enter the scene and established brands expand their footprint, the region's allure as a premier destination for high-end hospitality and residential ventures continues to grow, promising lucrative returns for those willing to seize the opportunity.

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