Any world-class sporting occasion opens the door to holiday let opportunities for homeowners in the host city. The 2016 Olympics are no exception and as Brazil gets ready for this unique event, Rio de Janeiro properties are cashing in by offering accommodation to tourists attending the Games. In some cases, particularly luxury properties, daily rates can reach R$30,000.
There’s big demand for holiday lets as an alternative to hotel accommodation in the city since hotels in Rio de Janeiro are almost at full occupancy levels for the 2016 Olympics. The latest estimate from the hotel booking portal Trivago points to 97.3 per cent occupancy making finding hotel accommodation in the city practically impossible.
No vacancies in spite of high rates and more rooms
The ‘no vacancy’ levels have come about despite the higher than usual room rates. The same portal points at prices of between R$870 and R$2,700 a day, up to three times higher than the rates charged during New Year and Carnival, the two busiest seasons for holidays in Brazil.
Full booking has also been achieved despite the big increase in the number of available rooms. While in 2009, hotels in Rio de Janeiro offered a total of 30,000 beds, this figure now stands at 58,000.
Space at homes in Rio de Janeiro
Faced with the almost impossible task of finding available hotel accommodation, tourists have turned to private holiday lets as an alternative. As a result, owners of Rio de Janeiro properties are making the most of the opportunity.
According to a report in the Brazilian news portal Globo.com, locals are cashing in on the 2016 Olympics with owners of ‘favela’ slum houses and luxury mansions alike offering tourists the chance to stay in their homes. Many are charging similar rates to the high holiday season, but Globo.com reports that other owners are asking up to four times as much.
Airbnb official provider of Olympics accommodation
Airbnb, the holiday let company that won the bid to provide accommodation during the 2016 Olympics, agreed to offer at least 20,000 rooms in Rio de Janeiro in private homes. The organisers of the Games hoped that this commitment would alleviate the problem of lack of places to stay in the city.
Latest calculations from Airbnb claim that there are a total of 25,000 rooms available in Rio de Janeiro properties throughout the Olympic Games. They also report that the average stay booked is 7.6 nights and for three people.
Rio de Janeiro represents one of Airbnb’s fastest-growing markets. When the company first started offering holiday lets in the city in 2011, there were just 800 on their books. The current 25,000 bring Rio de Janeiro into fourth position on the Airbnb rankings behind Paris, New York and London.
Brazilian properties cashed in on World Cup
Owners of Rio de Janeiro properties are following in the footsteps of Brazilians who let their homes during the 2014 FIFA World Cup. According to Reuters, more than 100,000 people stayed in accommodation listed with Airbnb during the tournament. The football matches took place in a total of 12 host cities and property owners who provided holiday accommodation received an average of US$4,000.
For the 2016 Summer Olympics, Airbnb report that the average price per night is US$165. This amount is considerably higher for Rio de Janeiro properties in prime locations for the Games. However, with high demand for accommodation and short supply, Globo.com claims that owners of properties situated some distance from Olympic venues are charging high amounts too.
An investment company specialising in global real estate opportunities, BRIC Group is currently developing The Coral resort, in Northeast Brazil, a luxury beachfront resort. BRIC Group also offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
(Sources: Globo.com, Reuters)