Fën Hoteles for Hotel Management Investors

The possibilities in the hotel sector of Latin America could not be better.

Are you interested in investing in hotel management in Latin America?

Investing in hotel management inside Latin America´s countries is an excellent business opportunity. The hotel industry in Latin America is one of the few industries with the ability to guarantee both growth and profit on medium- and long-term investments. The true potential of this industry is due to supply and demand.

The demand for hotels is determined by tourism and corporate travel. Both areas have enormous growth potential in Latin America.

The increasing rate of tourism in Latin America during the past few years is largely due to the beginning of a long-term tendency. Such an example is found in El Calafate, where tourism continues to grow at a rapid rate despite dollarized tariffs. The magnificent growth of tourism in Latin America has several explanations:

• Worldwide constant growth of tourism at phenomenal rates, largely due to a great amount of people with higher incomes and available leisure time.
• The joint effort of both the public and private sectors in promoting the region as a major tourist destination. Such efforts in international conferences have proven beneficial as Latin America is gradually becoming one of the preferred tourist destinations of the world.
• The international tendency towards "natural" tourism makes Latin America a unique, and highly competitive, destination.
• Events such as terrorism and tsunamis have converted alternative options into mainstream destinations.
• On the other hand, there has been a significant increase in demand due to the considerable amount of business trips following Latin America 's emergence from default, which has generated an increase in investments and economic growth inside the country.

In other words, when analyzing the hotel demand in Latin America, one can predict that the total volume of hotel business could be doubled in the next 5 to 7 years with variations according to each specific city.

Hotel demand also provides greater opportunities of growth and potential increases in profit for the local hotel industry:

• Most properties of the regional hotel industry are independent establishments which are often old-fashioned and inefficient. There are possibilities of maximizing the potential of existing hotels and providing customers with better service.
• The development of trademarks in the hotel industry of Latin America is quite limited. While 75% of hotels worldwide utilize a recognized trademark, only 15% of regional hotels in Latin America do so. The possibility of attracting clients is much greater when providing reliable service often associated with a regionally-recognized trademark.
• There is a global tendency to use the internet as a marketing tool to advertise goods and services. The internet can potentially increase the tariffs a hotel might charge for rooms.

In summary, the regional hotel industry is quite unique due to high "demand" potential and the possibility of improving the current "supply". Investing in well-managed and properly developed hotels, with recognized trademarks, is an excellent alternative to do business inside Argentina.

How to invest in the Hotel Industry of Latin America - Services provided by Fën Hoteles

Investing in the hotel business requires a detailed knowledge of business, architectonical, and operational viewpoints. Fën Hoteles will provide each investor with comprehensive service during the entire investment process.

Defining and Evaluating the Business

The first step in hotel investment consists of detecting the business opportunity: What is the best location for a hotel (country/city/neighborhood/block)? Is it better to build a new property, remodel an existing structure, or purchase a hotel that is already in operation? In the hotel business, it is not easy to find such opportunities. At Fën Hoteles, we are actively involved in the hotel market and constantly aware of potential investment opportunities in the various regions of Latin America. We offer our investors the chance to select such business opportunities and participate in, or conduct, the negotiation process with the owners.

At the same time, each investor must develop a business plan in order to evaluate the profitability that he/she expects to achieve from such an investment. This is generally difficult since the hotel market is not transparent and official information is scarce. Many investors are met with unpleasant surprises when the hotel is already in operation (lower tariffs, higher costs). At Fën Hoteles, we help the investor develop a proper business plan to help project tariffs, possibilities of occupation, and applicable costs, while utilizing information from our hotels and important tourism operators.

At this point, it is important to define the type of hotel and its corresponding trademark. What is better: a superior four-star hotel, a standard four-star hotel, or a boutique hotel? Is it better to have just a few ample rooms, or, a higher number of smaller rooms? How should the rooms be furnished? A poor decision at this stage might make the difference between a good or bad business. At Fën Hoteles, we offer our regionally-recognized trademarks and formats to each investor (Dazzler Hoteles and Esplendor Hoteles Bputique) to assure that each hotel is immediately recognized and occupied upon opening. We also advise each investor regarding important aspects of the product: architecture, design, furniture, service areas, etc. While managing eighteen hotels in Latin America, we have conducted more that 40,000 surveys among our guests, and therefore, clearly understand what clients desire from their hotel experience.

Planning and Pre-Opening

Once the trademark and product type have been defined, the construction and pre-opening stages now begin. Job positions must be defined, personnel must be selected and trained, computer systems must be installed, advertising campaigns must be launched, essential elements must be purchased, etc. This is often a daunting task. For example, a medium-sized hotel requires the purchase of more than 700 items. To do so, it is vital to understand the characteristics and specifications required, which suppliers are more reliable, etc. At Fën Hoteles, we offer pre-opening management to each investor. Having managed more than 8 openings in the last 4 years, investors can rely on the expertise and experience of our company.

Operating the Business while in Operation

Once the hotel is open, efficient operation is necessary in order to provide high quality service that complies with international standards. Such operation is also vital to increase the profitability of each investment. At Fën Hoteles, we rely on the best hotel management team of Latin America. With hotel management from Fën Hoteles, each investor will have:

Higher Sales

• Internationally-recognized trademarks
• Higher sales in the corporate, travel and tourism sectors
• Loyalty programs
• Use of electronic channels (Internet, GDS)
• Advertisements in national and regional media.

Better Quality of Service

• Rigorous operative standards and quality control
• More experience and operative know-how
• Constant surveys to evaluate customer satisfaction (plus "mystery shopper" program)
• Ability to attract the best talent due to potential careers offered in our hotel business.

Greater Profitability

• Joint negotiation with suppliers
• Experience and knowledge of most regional hotel suppliers
• Benchmarks to compare your hotel with 18 hotels in the region.
• Centralization of administrative tasks.

In summary, we provide all services necessary to assure an efficient hotel investment.

Please contact us, sending an e-mail to New Projects.