Amid the crisis in the sector, Accor network brings luxury hotel Fairmont the river

In the midst of one of the biggest crises ever experienced by the hotel market in Rio de Janeiro, the French Accor network, an industry leader in the country, is doing one of his greatest individual bets of recent years in Rio: an investment of $250 million which will be the debut R d the Canadian flag Fairmont in South America. The intention of the Accor is open until April next year the unit, which will have 400 rooms and be a "retrofit" of an old unit of the hotel Sofitel Copacabana neighborhood. The investment seems to go against the grain of the mood of the hotel market, which is bad in all Brazil, but especially pessimistic on the river. "The carioca market is going through a terrible time," defines Diogo Canteras, partner at Hotel Invest. "It's a perfect storm, from the point of view of economy and security." As a basis for comparison, exemplifies Canteras, demand in Sao Paulo fell 23% between 2012 and 2017 – in the same period, the retraction of the River was more than 40%. With the definition of the electoral scenario and the inauguration forecast in April, the Vice President of high standard and luxury hotels of the Accor in South America, Philippe Trapp, expects the show segment, until then, a positive sign. "We don't think it's going back to the levels of 2013, but there is room for recovery. We get it, more in São Paulo than in Rio ", says the Executive. To capture the largest number of clients possible, the Fairmont in Copacabana will be presented as a "hybrid" of business and tourism hotel. The alternative objective of transforming the enterprise in Fairmont, Accor brand inherited in a billion dollar acquisition made in 2016, was precisely to broaden the range of luxury flags of the network on the River, which already has a unit Sofitel. Trapp also says that the size of the venture – which will have 400 rooms, 700 square meters of event space and two large pools-resembles more the Fairmont's proposal than to the Sofitel, which usually has more "boutique" service in buildings smaller companies. The contribution of $250 million came from the company of R investment of own network, Accor Invest. In cases of more modest ventures, it is common to work with local investors also Accor. Between the cities of South America that may be candidates to have a unit of the brand in the future, Trapp quotes Sao Paulo, Buenos Aires and Santiago. "Is a great capital." To separate the proposals of their luxury brands, Accor has decided to lend an air of "carioca" the atmosphere of the Fairmont, the architecture – which will be inspired by the Rio de Janeiro and the brazilian art of the years 1950 and 1960-through menu and for servicing. The Executive explained that, while the Sofitel tries to be "France outside France", the Fairmont fits the culture of the places where it settles. Outputs one of the challenges of the Fairmont will be depressed prices in the luxury hotels of the River – in some cases, the amount charged fell 50% in five years, according to Canteras, Hotel Invest. Before increasing rates, says the expert, the city will have to recover tourists lost: today, on the South side, the average occupancy of the rooms is at 50%. In Barra da Tijuca, about 70% of the rooms empty days. From the point of view of business tourism, Canteras see increased oil royalties, which may cheer the crumbling economy. To retrieve the leisure traveller, the Hotel partner Invest only sees a more immediate effect: the conquest of the Sao Paulo client. No fate more convenient for those who live in Sao Paulo. "