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Argentina: a window to the opportunities of the hotel industry

The tourism boom has led to a rise in hotel investments in South America, says Arturo García Rosa, of HVS Argentina. Argentina leads the segment with Buenos Aires exhibiting an occupancy rate of almost 80% and hotel rates between US$300 and US$350 for luxury hotels. The industry, he notes, rebounded with the devaluation. However, today there are segments focused on quality. Although in dollar terms the country is more expensive than in 2002, it remains competitive in relation to other destinations, such as Europe. In addition, the variety of scenarios, the cultural offer and the population are a strength that differentiates the country from the rest of South America.

Since the country's recovery, U.S. and European investors have entered the market, mainly with the construction of hotels in Buenos Aires and Patagonia. These have begun to impose trends such as mixed-use projects, which seek to amortize the cost of lots, in continuous increase, a strategy used by the segment of residential hotels or condo hotels in the United States. When a luxury hotel and its brands cover the complex, the value of that name causes the residences to rise in price with respect to the area. In this way, residential projects that use this system can raise their value between 10 and 30%, and the sale or pre-sale of such homes allows to finance the cost of land and the construction of the entire complex, including the hotel. For these reasons, the analyst affirms that in its traditional formats or with new variations, tourism has come to the country to stay.

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