The supply of rooms in 12 Brazilian cities that will host the 2014 World Cup will grow by 18%, that is, there will be 20,000 new units, implying a total supply of 126,000 rooms that could exceed demand after the sporting event, according to a study conducted by the firm Hotel Invest in partnership with the Fórum de Operadores Hoteleros de Brasil.
The study warns of a possible oversupply of rooms for 2015, which could generate losses for new investors who are depositing their money in the hotel business.
"The occupancy rate of hotels runs the risk of falling a lot, even by 60% in some capitals after the main football tournament in the world," says the study in which it is also specified that the cities with the highest risk of oversupply would be Sao Manaus, Salvador, Belo Horizonte, Brasilia and Cuiabá.
The study also warns of the limitations for the construction of new hotels in Sao Paulo and Rio de Janeiro, due to the continuous increases in the price of land, which could generate problems for investors and hotel developers in the country.
