Friday, September 26, 2014

El Salvador: US-Based Hyatt Hotels Corp. Puts a Cautious Toe in the Water

One criticism of foreign investors, particularly those in the United States, is their reluctance to be "completely in" when choosing to invest in a developing country.
US-based Hyatt Hotel Corp. has chosen to open its first hotel in El Salvador, a modest $36 million project that is expected to add 300 direct jobs in San Salvador in a country of 6.4 million residents.

Antiguo Cuscatlán, the location selected for the new Hyatt hotel will be situated in the municipality of La Libertad department of El Salvador. This suburb is also part of the Metropolitan Area of San Salvador, southwest of San Salvador and southeast of Santa Tecla. The population is approximately 49,000. 
The future Hyatt Place San Salvador will rise in a shopping center in Antiguo Cuscatlán, a suburb of El Salvador's capital, the Salvadoran Export and Investment Promotion Agency, (PROESA) announced.

COMMENT: Any business operation functioning in El Salvador must be fully cognizant of the security risks that prevail in the country each day. That being said,  for properties that effectively protect their interests and staff,  the profits can be lucrative. 

According to the US Department of State's Bureau of Diplomatic Security (DS), the 2014 Crime and Safety Report reveals that El Salvador is one of the most violent countries in the world:
The hotel should begin operating in the first half of 2016. 
The 140-room hotel will offer features "such as sustainability, energy efficiency, comfort and multiple services for customers, and its design will be innovative," PROESA director William Granadino said.
Hyatt Hotels Corporation operates 483 hotels in 45 countries and plans to build hotels in Guatemala, Nicaragua and Honduras, the agency said. 

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