From Hotel to Condominium Apartments

With its profitability affected by low hotel occupancy recorded in the capital of Panama, the hotel Esplendor has converted its 100 rooms into rental apartments.

Wednesday, April 17, 2013

This is the example of the boutique hotel Esplendor, which opened its doors in 2010 with an investment of $30 million, but at the end of 2012 closed due to the low occupancy rates, which made it unprofitable.

Alexander Frenkel, director of the Argentinian chain Fën, the franchise which managed the hotel until last October, stated that given the low demand prices fell sharply, which led the project owners to decide on the real estate market and to rent out the rooms that had been earmarked for the hotel.

Meanwhile, Niurka Acosta, PH administrator which operates in the building, said that 50% of the rooms are empty, and they are being converted for inclusion in the supply of apartments in the tower located in the banking area.

However, the president of the Panamanian Association of Hotels (Apatel), Jesus Sierra, ruled that it could produce a ripple effect in the tourism sector.

Sierra acknowledged that there are hotels that have lowered rates, while others are making alliances with operators and airlines in order to promote Panamanian destinations in new markets.



More on this topic

Panama: Pedasi Hotel for $25 million

June 2015

The company Toscana Azuero has announced that it will build a hotel and a housing complex in Playa El Toro, in the province of Los Santos.

Complaints by the hotel industry regarding the low occupancy rates of their rooms due to an apparent excess in the number of hotels, do not seem to have affected the boost in investment in the sector, particularly in areas outside of Panama City, where the largest number of rooms is reported.

Offices in Panama: More Supply Than Demand

December 2014

Predictions are that the office vacancy rate in Panama City, currently 33%, could reach 45% in 2016.

Following that under usage prevailing in the office market rental rates have dropped by up to 30%. In the case of hotels, they are also experiencing this phenomenon, the vacancy rate has fallen by 50% and in turn nightly rates have decreased by 28%.

Fines For Vacation Rentals in Panama

September 2014

The campaign against property being rented out for tourism purposes establishes penalties with fines ranging from $5000 to $50,000 for those who promote and commit the crime.

The Tourism Authority of Panama (ATP) has opened up a communication channel for businesses and individuals to report cases of houses rented to foreign tourists in the capital, in compliance with Law 80 prohibiting this activity.

Hotel Bubble in Panama?

January 2012

The economic and tourism boom has created an inordinate amount of investment in hotels, which is threatening to lower the occupancy rate to unsustainable levels.

The opening of more than 20 hotels has been announced for 2012, adding 6,000 rooms to the inventory offered by Panama, and representing an annual increase of 300% in the hotel supply, while the increase in the number of visitors to the country during 2011 grew by - 13%, which although significant, is far below what would be needed to keep up the hotel occupancy rate, which currently stands at 66%.

 close (x)

Receive more news about Hotels

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


World Panama Real Estate Marketing

Organization that operates in Panama and Panama.
Phone: (507) 3454542

World Panama real estate marketing promotes city and beach property listings for sale or rent with international syndication to more then 80 real estate web portals worldwide.

Company Profile

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Mar 27)
Brent Crude Oil
28.25
Coffee "C"
116.75
Gold
1,644
Silver
14.625