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Boom in hotel construction causes prices to drop

by | Mar 13, 2012

Hotels

Colombia’s hotel rates dropped amidst a surge in hotel construction and foreign investment.

According to Colombian radio station Caracol, hotel rates in Colombia’s second largest city Medellin have dropped 40%, while room prices in major cities such as Bogota, Cali, and Barranquilla are also falling.

Hotel Bogota manager Alfonso Dominguez said the drop in rates was caused by a glut in hotel construction and an influx of foreign investment.

Dominguez said, “Colombian hotels are positioning to compete with international firms.”