Costa del Sol Wyndham Hotels

Sergio Rivas, general manager of Costa del Sol, reveals that in the medium term the company will seek to open more hotels in the country. One of the two hotel developments of the new terminal of the Jorge Chávez Airport, which they are in charge of, would be inaugurated in 1Q25. The hotel sector has recovered faster than expected in 1Q24 (SE 1914).

Is this trend also reflected in Costa del Sol's results?

We grew 20%, especially due to the recovery of tourists in the south of the country, which was hit hard at the beginning of 2023 by the coup of [former President Pedro] Castillo. This growth occurred even though the north is not doing very well. For example, Trujillo, Piura and Tumbes have been affected by crime, dengue and the economic situation. In the north we are growing between 7% and 8%, when we expected to be above 15% this quarter. Even so, we expect to maintain the growth of 20% in 2024 and thus exceed the figures of 2019. We are also remodeling the rooms in Cajamarca. We are 30% or 35% complete.

Will Costa del Sol open new hotels?

We are interested in continuing to grow. Not in the short term, because we are focused on the airport; but in the medium term we want to have more hotels in Peru.

In which cities?

Costa del Sol was born with the intention of having a hotel on the northern beaches. Something that did not materialize 29 years ago and is a pending issue. There are also interesting areas in Lima, such as Miraflores, and cities such as Cusco. "We expect to maintain the growth of 20% in 2024" Costa del Sol won the good bid of Lima Airport Partners for the hotel development included in the expansion of the Jorge Chávez International Airport, which would be ready in December.

What are the progress of this project?

Our proposal was a five-star hotel with 249 rooms and full service. And another, three-star, with 338 rooms and limited service. The first would come out at the end of 1Q25, the other, two years later. As for the level of progress, all the earthworks have already been done, the topographic studies and we are building around 20 columns of the first hotel.

What is the investment of both hotels?

In the five-star hotel we are investing approximately US$38 million; in the other, about US$20 million

Will there be other investments this year?

Yes. We have planned an investment of US$1.6 million in remodeling, purchase and renovation of equipment. For example, we are converting the event areas in Trujillo and Pucallpa into convention centers. In 2023, Costa del Sol opened an office in Miami.

Are you looking to develop a hotel there?

We opened a commercial office in Miami, because it is one of the most important cities that has a connection with Lima. That will give strength to our hotel brand. We do not rule out having a hotel, but it is not in an initial plan.