Brazil’s RevPAR, or revenue per available room, is at its highest level in the country’s history, according to the executive vice president for Jones Lang LaSalle in São Paulo, Ricardo Mader. This was helped by a 10.4 percent growth in ADR, or average daily rate, despite of drop in occupancy rates by 1.4 percent. This rise was facilitated by a quick rebound in Brazil’s economic recovery and was one of the greatest rises seen by any large country in the world.

Properties that were in the firm’s sample saw their gross operational profit (GOP) reduce by 1.1 percent overall in 2009. This occurred because business and commerce in the region used their facilities less and reduced the number of banquets, events and meetings that were booked. Again, this was down to the global financial crisis yet Brazil’s economy was quick to bounce back.

Brazil will benefit from further economic boosts this decade with the country preparing for not only the FIFA world cup in 2014, but also the Olympic Games in 2016. It is expected that new hotel investment and development will increase in readiness to accommodate the huge numbers of visitors for these events.

With only about 7 percent of hotels in Brazil being affiliated with domestic or international brands, they represent about a quarter of the country’s total room inventory. This percentage is on the rise, however, as foreign investors continue to be convinced by Brazil’s strong growth prospects.

This further increase is likely to realise a 5.5% increase in total room inventory over the next few years. However, Brazil’s strong economy and appealing tourist attractions and events mean that despite an increase in the number of rooms that will be available, this increase is still not enough to prevent occupancy rates and average daily rates from increasing the performance of hotels in Brazil over the next few years.