Because of high land prices in the Colombian city of Cartagena de Indias, El Salvador's Grupo Poma, which had plans to put into operation a JW Marriott hotel establishment in that city, as it did in Bogotá, has reconsidered its investment intention.
"In Cartagena, land prices have gone to heaven and really a hotel can't be profitable with that phenomenon. In that city they are, at least, at US $ 3,000 per square meter, and that makes it unfeasible for us to make a hotel at this time, "explained the corporate vice president of Real Hotels & Resorts, belonging to the Poma Group, Fernando Poma.
For that reason, Spokespersons of the Group reported that they are currently evaluating their possibilities of expansion in other Caribbean cities and, specifically in Colombia, in Medellín and Barranquilla, which are also important cities in that country.
"We're looking at other cities, but we want to get in if all the stars are aligned. We are being very cautious. In Bogotá, for example, we feel that there is an oversupply of hotels. There has been a euphoria of hotels in Bogota and we feel that now it will be over-offered," she said.
