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Latin America Investment News on Viva Tropical

Nicaragua Expands Hotel Base, Still Lacks Convention Center

Article Summary:

Nicaragua will welcome at least 350 more hotel rooms in the capital region of Managua this year as the country attempts to expand its hotel capacity to a competitive level in the region. However, Managua still lacks 5 star hotels and a convention center, both of which hold the potential to bring larger resort-type hotels to Nicaragua.

Photo Credit: Prensa Nicaragua

Original Article Text From Prensa Nicaragua via Google Translate :

Hotel Supply Begins Expansion

At least 350 rooms in the hotel supply increase of 4 and 5 stars of Managua in the next two years, according to government and private sources confirmed.

On Monday night Latam Hotel Corporation announced that it will build a hotel that will operate under the brand Hyatt Place, next to Galerias Santo Domingo. With that announcement confirms that the capital will have at least three new hotels: Hyatt Place, Holiday Inn Express, near the roundabout Jean Paul Genie-and hotel to be built on the old convention center Olof Palme.

This coincides with the announcement that made the Nicaraguan Chamber of Construction last month, when it reported that the construction of three hotels in Managua.

The chief executive of the Nicaraguan Institute of Tourism (Intur), Mario Salinas Pasos, explained that with these three new hotels offering rooms with quality 4 and 5 stars will grow by 40 percent in Managua. Currently in the capital of that range hotels offer a 858 rooms.

The 140-room Hyatt Place will be expected to bid a Holiday Inn Express 110 and the third about a hundred hotel rooms.

“I think it will start a process off hotel investment and other in the field of tourism, from this year and from 2013 … we are entering a new phase of investment in Nicaragua in the hotel industry and tourism, “said the official.

As of July 2012, according to statistics the ministry, Nicaragua has a 10.235 hotel offer rooms, as in 2011.

HYATT start this year
Just when the rainy season ends in the country later this year, on land adjacent to the shopping center Galerias Santo Domingo, will begin construction of a hotel in Latam Hotel Corporation, which will operate under the brand Hyatt Place.

“The product we bring to Nicaragua think it comes at an opportune time, the influx of tourists and business travelers has been increasing in recent years in the country,” said Fernando Paiz Andrade, president of Latam Corporation.

The project is part of an expansion strategy that the investor group is implementing throughout the Central American region. “In the next six months we will begin the construction of three hotels, one in Guatemala, one in El Salvador and east of Managua,” he added.

To Salinas arrival of this investment is a good sign for potential investors in the hotel industry in Nicaragua see a suitable place to set up business.

“The fact that this brand come to Nicaragua opens many doors, because that gives a good signal to other brands also immediately try to settle in the country,” he said.

It is anticipated that the construction of this hotel completed in two years.

Managua is the department that concentrates most of the hotels in the country with 33.85 percent of all hotels, lodges, guest houses, hostels, pensions, among others, according to the ministry statistics. Rivas is the second most tender department (11.10 per cent), followed by Granada (7.63 percent).

The president of the Hotel Association of Nicaragua (AHN), Alvaro Dieguez, says the three new hotels would be built, the supply in the capital “is enough.”

Dieguez considers the offer should be expanded to beaches and other tourist attractions of the country and thus to have “good hotels offer beach”.

“Hopefully come more investors, more investments otherwise the hotel, so the cake does not have to deal with and can grow around the world,” he stressed.

Currently of the 286 hotels in the country, according to the ministry updated to July-the larger the Barceló Montelimar, in San Rafael del Sur, with 300 rooms. The capital has no large hotels that can accommodate thousands of visitors.

Dieguez, president of the AHN, recognizes that most hotels offer high quality standards from 130 to 140 rooms, and near misses the possibility that an international chain looking to invest in a hotel with 500 rooms, for example.

To attract such investment, he admits, would be required to have a convention center bigger than those currently offered, in order to make massive events in the country.

“Maybe he has lost a bit because we have a convention center bigger than the Crowne Plaza, bringing large conventions Managua 5,000 people,” the president of that association which brings together 22 members of Managua, Esteli, Granada, León, Chinandega and Rivas.

As of July growth in tourist arrivals in Nicaragua is 11.5 percent, with 694.906 visitors and at the end of the year could be around 6.8 percent.

Link to Original Article:

From Prensa Nicaragua

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