BACKGROUND: Panama’s real estate sector has been continually growing especially in Panama City and some parts of the Panama’s countryside, like Boquete. While there is debate as to whether the current condo boom will continue, one area of real estate that still has much opportunity is hospitality. Hotel occupancy rates in Panama are second in the world outside of the United States largely due to the fact that Panama has become an international banking and trading center in addition to a tourist attraction. The multi-billion dollar and multi-year expansion of the Panama Canal will also no doubt continue to attract international business for years to come.

THE GENERAL OPPORTUNITY: Panama City still has a need for hotels, from local economical hotels to international world-renowned branded hotels to unique boutique hotels. Investor Partners can participate in projects from early stage developments where there is the potential for higher returns over a longer period of time to existing developments where the owner/operator/developer is looking to buy-out partners or simply sell a stake in their existing development. Projects in the Panamanian countryside also offer a great opportunity to establish a presence in less widely-known cities, but that have had significant investments from different industries, such as oil and mining. The cities of Puerto Armuelles and Penenome are two prime examples where such investments are taking place.

Artist Rendering of an approved skyscraper project for sale

HOSPITALITY INDUSTRY ACTIVITY IN PANAMA:

• Marriott plans to expand existing properties and to add two additional hotels, tripling its presence in Panama by 2011 to five hotels and 1,200 rooms. In fact, Ed Fuller, president & managing director of international lodging for Marriott International stated in a July 2008 press release, "The economic outlook of Panama is strong and the hotel industry is booming here."
• Orient-Express Hotels and The Related Group have signed a "letter of intent" to establish a 50/50 strategic partnership, to develop and operate "multi-use projects" including the development of a hotel in Panama on Balboa Avenue.
• InterContinental Hotels Group manages 4 hotels in Panama included two InterContinental branded hotels and a Holiday Inn and a Crowne Plaza.
• Hilton has three projects in development, one Hilton brand hotel in the Iron Tower (former Ice Tower), one hotel renovation project (Doubletree brand) and a new hotel construction project (Embassy Suites brand).
• The Trump Organization and local development partners are building a $400 million development called Trump Ocean Club International Hotel & Tower (a mixed use project with a hotel, offices, residences and a casino).
• Other hotel brands with existing projects/hotels in Panama include buddha-bar Hotel & Spa, Hard Rock Hotel, Radisson, Wyndham, Sheraton and others.
• The 2007 Deloitte Hotel Global Ranking Index ranked Panama second in the world outside of the United States in terms of occupancy at 84.7% and found that revPAR recorded a 37.9% increase to $121.

Some Available Hotels Projects and other real estate:

• Approved Skyscraper Hotel and Residential Project right on Balboa Avenue - Developers estimate that the value of the approved project and land is over $100M, but they are looking for offers
• Existing 42-room hotel in the Calidonia area of Panama City - USD 3.5M OBO
• Bocas del Toro resort project - USD 1.5M OBO
• Las Cumbres, Panama City luxury residential development
• more that are not listed

THE DIFFERENCE: You have the opportunity to join existing developments with experienced developers. You also are not subject to the risks of going into a project alone in foreign country. You will have a local experienced development partner that knows local regulations and has a track record. You also optionally have the benefit of having an in-country partner in Esenai that will look out for your investment as partner with a vested interest in ensuring projects are successful.

SUMMARY: If you are looking to start or expand your international portfolio, you must consider the Panamanian hospitality industry. Panama is among the most stable countries in Latin America and is at the top of the banking and trading industries in the region.

PREFERENCE? Do you prefer early-stage, ready-to-build or existing developments? Are you interested in developments in Panama City or do you prefer to be a first-mover and invest in areas where there is not a large hotel presence but there is an established or potential need? Let us know by completing our online Panama Hotel Investment Inquiry form below or call us.

ABOUT ESENAI: Esenai is a Maryland (USA) Corporation led by Marvin Corea who recently moved back to Panama to focus on hotel developments in Panama. Marvin is involved in opportunistic investments in private equity and real estate in the United States, Panama and other international locations.

Hablamos español~Parlons un peu de français~Tôi có thể nói rất nhỏ tiếng Việt~Falamos um pouco Português~Parliamo un po 'di italiano