American hotel chains invest more than $100 million in Peru

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The Hyatt Group has already purchased land in San Isidro for its future hotel. (Photo: El Comercio)

After evaluating the market following the presidential election, three American chains studying the hospitality industry in Peru confirmed the development of their luxury projects, targeting the corporate segment, El Comercio reports.

The Hyatt, Intercontinental and Wyndham groups are working projects of $50 million in the first case and $30 million in the last two.

The president of the National Chamber of Tourism, Carlos Canales told El Comercio, "The projects will become concrete next year."

The Hyatt has plans to develop a hotel in Lima. Intercontinental will develop in Trujillo and Wyndham is looking to Arequipa. Only in the case of the Hyatt, which already has purchased land in San Isidro, would the investment correspond entirely to the chain.

Both Intercontinental and Wyndham seek local partners to take over the building of their projects. The specialty of these companies is the operation of hotels, a model that has allowed the entry of chains like Starwood (with the Westin Hotel & Convention Center) or Hilton (with projects in Paracas and Miraflores).

Alejandro Paez, a hotel marketing expert from the University ESÁN, noted that what Intercontinental and Wyndham can offer to future partners is "a giant global platform for reservations which guarantees access to American tourists and long distance visitors who value a globally recognized brand."

At least in the case of Wyndham, Paez says, "The partnership agreements require no more than three years commitment, something very interesting for local investors who want to learn business and then move toward independence."

One aspect, however, worries Magin Perez, a specialist in hotel management from the University of San Martin de Porres.

"If demand does not grow at the pace of investment, in 2014 will have a crisis," Pérez said.

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