Horwath HTL Industry Report: Brazil Fractional Market
Brazil has become one of the leading countries in terms of 'fractional' ownership in the hospitality industry. With a large domestic market discovering the benefits of this sector and a growing number of new projects, the multi-ownership business is changing the real estate tourism business' face. Luxury local brand, Fasano and international brands, Hard Rock and Wyndham are the most significant, sponsoring very significant projects in the region.
Fractional ownership launched in 2013 on the back of the failure of time-share. Multi-ownership, fractional or fractional ownership is the structure in which different buyers, the "multi-owners", acquire fractions of a single real estate asset. Options for the acquisition of the multi-ownership assets such as long-term financing, flexible payments means, and the possibility of interchanging with existing properties, have quickly consolidated this system as the most successful mechanism to develop tourism properties in Brazil.
Many kinds of new projects are being launched and several international brands are interested in entering into this new segment of the tourism business. It is forecast to achieve the 20,000 rooms within a couple of years with at least four leading international brands active in the segment. Brazilians love a mechanism that allows them to buy simply with long-term financing, provides properties deeds and allow interchanging with other destinations. The future of Brazilian (and surely South American) vacations is fractional!
About Horwath HTL
Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry.
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