News

Starwood Hotels, one of the largest hotel companies in the world, is expanding two of its key brands in Panama City, according to a recent company statement.

The chain expects to open The Santa Maria, its first “Luxury Collection” hotel in Panama City, by 2017. The hotel will be located in the fast-growing Costa del Este section of the city, part of the new high-end Santa Maria Golf & Country Club. The Santa Maria resort will include a Jack Nicklaus-designed golf course and luxury homes, in addition to the 180-room hotel and spa.

Starwood is also set to open its first W brand hotel in Panama City in the next two years, near the Zona Rosa district. Known as Starwood’s hip brand, the hotel will feature 203 rooms, four “Wow” suites, a nightclub and an 8,400 square-foot workout facility.

When both hotels are open, Starwood will have eight hotels in Panama under six of its brands.

Both brands will be excellent additions to Panama City, which is turning into a first-rate city for both businesses and tourists. The world’s biggest hotel chains have been rapidly expanding in Panama City, trying to take advantage of the fast-growing business and tourism traffic. Last year Panama City passed the 13,000-room milestone, almost double the number of rooms available in 2007.

The competition has been good for travelers, resulting in new options and discounted rooms. It has put pressure on short-term rental rates, but we think that will be a short term issue, as the market absorbs all the new product and demand continues to grow.

Starwood sees Panama as a growth market, particularly in the luxury sector.

“We continue to see increased demand for luxury accommodations across Latin America, which drove signings for us last year in markets like Mexico and Panama,” said Victor Vazquez, v.p. of development for Starwood Latin America and Caribbean.

Recent sales data and the continued growth of luxury shopping choices support Starwood’s plan. As we noted in December, many of the biggest luxury retail brands in the world are setting up shop in Panama.

The growth of Costa del Este and the development of the Amador Causeway as a luxury destination will help the overall market, including Punta Pacifica. To paraphrase an old saying, great brands raise all the boats.

Jeff Barton is the Managing Director of Punta Pacifica Realty, the leading sales and property management company with two offices in the exclusive waterfront skyscraper neighborhood of Punta Pacifica.