MercoPress. South Atlantic News Agency

Bad times for the hotel industry in Uruguay

The Belmont in Carrasco

Several iconic hotels in Montevideo, Uruguay, have closed or will be converted into office buildings according to the Chamber of Tourism sources. The list includes a top-rated boutique hotel, Belmont, which hosted among others members of the British royal family and political figures such as Fidel Castro, and other world leaders.

Other hotels include a 135-room Four Seasons, operating under Marriott International, in the heart of Uruguay's capital which five years ago was the headquarters of the presidential hopeful Tabare Vazquez. Apparently it will be converted into a co-work system.

Regency Suites, Austral, Plaza Fuerte and Meliá have also closed or are in the process of transformation given the tight tourist market in Uruguay.

When the announcement was made, Juan Martinez head of the Chamber of Tourism admitted that 2018 was “a very complicated year” for high category hotels given the difficult situation in neighboring Argentina, plus a combination of high costs, low rates and diminished occupancy.

Uruguay has a strong tourism sector but is highly dependent on Argentina, which provides some 70% of the inflow, and the financial situation in the neighboring country has been decisive in its impact