Plans to invest more than 100 million dollars in new hotel infrastructure is slated for the city of Cali, Colombia by 2013. The investment would add an additional 1,170 rooms of capacity to the municipality located in the state of Valle de Cauca.
Marriot Courtyard together with hotel chain Avia constitute approximately 50% of the anticipated investment that is due to break ground in 2011. Other plans for medium and small corporate boutique hotels are also being planned and designed as well including Mexican hotel flagship CityExpress.
Also being designed are two new hotels to the north of the town and adjacent to the Chipichape Mall. These two initiatives would bring another 180 rooms close to the existing construction of Hotel Spiwak, consisting of 220 rooms which is slated to open its doors at the end of October this year.
For Luis Antonio Rodriguez, the project manager at Hotel Spiwak, Cali is a city that has a lot of growth potential to develop the hotel sector, especially now that the economy is expanding as foreign investment capital continues to roll into the country.
Cali Hotel Occupancies Continue to Drop
Cali, Colombia hotel occupancy has fallen from 50% in the first half of 2007 to 36.7% over the same period this year. According Cotelvalle, this is due to the private home/apartment rentals phenomenon that has led to a higher than normal supply of available rooms in the city. Colombia has recently passed a law prohibiting such private room rentals that are less than 30 days in duration. However, the enforcement of such laws against private citizens and homeowners in Colombia is a difficult and tedious task that many feel is unwarranted and serves to protect the monetary interest of the hotel industry and its elite members.