Union Hanover Securities, a London-based real estate and development company, has announced that it is opening a new hotel in Bocas del Toro, Panama.
Miami-based hotel operator Boutique Hospitality Management has been contracted to manage the property. Completion of the 48-unit hotel is expected for 2017.
Located on one of the many tropical islands in the province of Bocas del Toro, the hotel will offer visitors a range of outdoor activities in an environment surrounded by waterfalls, rain forest, and volcanic boulders, while maintaining the modern amenities expected from a world-class hotel. Transportation to and from the island will be available, so guests can easily visit the many shops and restaurants offered in Bocas Town.
Despite concerns about an overabundance of hotel rooms in Panama, Union Hanover Securities is optimistic about their new project, which is their second in Bocas del Toro.
“We continue to invest in the Panamanian market because we truly believe Bocas de Toro will become the world’s next leading destination for those seeking an exclusive island retreat that’s filled with adventure and excitement,” said Peter Debs, managing director of Union Hanover Securities.
Recently, Sara Pardo, president of the Panamanian Association of Hotels, told La Prensa that the 209% increase in the number of hotel rooms in recent years has far outpaced demand, which has grown about 5% annually during the same period. In the interview, Pardo estimates 1,200 new hotel rooms are expected to become available in 2015 and that an “emergency plan” is needed to boost Panama’s tourism industry.
The oversupply concerns such as Pardo’s, however, tend to be focused on the booming capital, Panama City. In 2013, Panama City had 17,000 hotel rooms—up from 10,000 in 2010. According to Panama’s Ministry of Tourism, there are more than 20,000 rooms in 650 hotels in the entire country.
Even if the warning about an oversupply of hotels in Panama is warranted, Union Hanover Securities can rest on the fact that tourism spending in Panama increased by US$179 million in 2014, reaching US$3.23 billion.