Immobiliare Real Estate Development (IRED) announced in La Prensa the development of two new hotels here in Panama.
Immobiliare Real Estate Development group (IRED) will own a majority share in the hotels, but as per Hyatt franchising rules and standards, the hotels will be managed by Hyatt. Josep Malca, president of IRED, says some $50 million will be invested to construct two new Hyatt-brand Panama hotels. Per Malca, his family has over 40 years of experience in the construction sector, particularly with regard to office and commercial buildings.
Panama’s first new Hyatt will be located in the downtown area known as the financial district, a popular location for Panama hotels. Malca says construction on this 167-room hotel will start next month, and that completion is slated for completion in 2012.
Conquering Costa del Este
The second Hyatt will be located in Panama’s elite Costa del Este neighborhood. Construction on the 179-room Hyatt is scheduled to start in 2011. Currently Panama’s only planned district, this area is located east of the San Francisco neighborhood (accessible via the Corredor Sur highway). Costa del Este houses well-to-do Panamanians, as well as international residents from countries such as Venezuela.
Locals say it makes sense to locate a hotel here, as the area’s large business park houses companies such as Adidas and Copa Airline’s headquarters. With so many businesses located in this area, international staff members and potential clients need conveniently located hotel rooms. The many restaurants and shops make it easy for visitors to meet their needs within the area. Costa del Este is also closer to the Tocumen International Airport, also known as the Hub of the Americas, than other upscale neighborhoods.
Per La Prensa, Hyatt may also build a third hotel in the former Panama Canal Zone and is even considering areas outside Panama City.
Hyatt’s Panama hotels will be partially financed by local banks, with IRED and Hyatt footing about 50% of the bill.
New hotels are popping up all over Panama. New Panama hotels inaugurated within the last year or so include a new Breezes brand resort, a $30 million hotel between the beach communities of San Carlos and Rio Hato. The 294-room hotel is managed by the Jamaican chain Superclub.
The 120-room Bristol Buenaventura, a luxury hotel on Farallon beach, also opened its doors in February 2009. Among the most recent to open is Le Meridien, a boutique on Balboa Avenue boasting 111 rooms.
There is a significant hotel room shortage in Panama today. With occupancy often over 90% in Panama City, the nation needs some 20,000 new hotel rooms to meet the demand. With some 20 hotel projects or approximately 8,000 rooms currently in the pipeline, there is still room for growth.