Atlantica Hotels International has joined the booming fractional market in Brazil. The largest privately-held hospitality company in Latin America is capitalising on the launch of new hotel projects in Brazil. The sector is one of huge interest to big market players as well as holidaymakers.
Atlantica Hotels International is the largest group in the Brazilian hotel and tourism sectors. The company commands US$2.6 billion in assets under management and represents 19 brands in 44 cities throughout the country. Its latest project is fractional property ownership at the award-winning beach resort, The Coral, in Northeast Brazil.
Synergy between the sectors
According to Ricardo Bluvol, Vice-President of Development at Atlantica Hotels International, hotels and fractional ownership of holiday homes have a natural synergy. “Fractional owners also want hotel services such as leisure facilities and restaurants,” said Bluvol.
The company has a big interest in luxury class hotels in Brazil and is the largest operator in the sector. Their new project will combine a luxury hotel with fractional villas giving owners the best of both worlds.
Fractional ownership booms in Brazil
Like other big players in the market, Atlantica Hotels International have shifted their focus to fractional ownership, which is currently experiencing a boom within the Brazilian property market. According to figures published by DCI, the number of fractional properties rose by 48% between 2017 and 2018 alone.
Fractional ownership has entered the Brazilian property investment radar because of its huge potential for returns. Holiday homes have maintained their upward trend despite the economic difficulties experienced in Brazil prior to 2017.
“In the worst years of the crisis, second homes continued to sell unlike first homes,” said Caio Calfat, Vice-President of property and tourism at the Brazilian Construction Union (SECOVI-SP). Fractional too is gaining momentum among developers.
Calfat points out that ADIT Share, the fractional trade fair in Brazil, has seen its participants grow five-fold since it began. The first edition welcomed just 70 exhibitors and the sixth edition and latest hosted over 350, several of which were big players on the Brazilian market.
Advantages of fractional ownership
Brazilian buyers have been quick to see the advantages of fractional ownership. They’re particularly interested when it comes hand-in-hand with hotel infrastructure and experienced management such as the model used by Atlantica Hotels International.
The Coral Resort near Fortaleza in Ceará, Northeast Brazil has launched a fractional product to the Brazilian market. According to Daline Moura, Head of Business Development in Brazil for the BRIC Group, “Demand is high,” she said. “The buyer gets a guaranteed holiday for much less and without the high monthly costs.”