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Panama's developers undeterred by slump in hotels

Friday, August 24, 2012

Considered a business hub for Central and South America, Panama has attracted a swell of investor interest — as well as new hotel projects — in recent years, but some analysts are wondering whether the increase in rooms will leave the country in a state of oversupply.

Those concerns don’t seem to be stopping developers from building.

“In the late 1990s, Panama City had a very limited supply of hotel stock — less than 2,000 hotel rooms. Today, the city boasts more than 10,000 rooms, with more underway. However, evidence of an impending bubble collapse is beginning to be observed,” said Fernando Garcia-Chacon, executive vice-president of Jones Lang LaSalle Hotels.

Source: Hotel News Now