(Press Release) The Terranum Group and Equity International officially closed on the acquisition of Decameron Hotels & Resorts, the biggest hotel chain in Latin America.
The transaction, which marks a milestone in the regional market, confirms the strength of Terranum’s platform and accelerates expansion plans for its Terranum Hotels unit, now the largest hotel platform in Latin America, with great capacity to generate employment and economic growth in each of the countries it operates.
Through this transaction, which allows Terranum Hotels to complement its existing portfolio of city hotels with Decameron Hotels & Resorts’ All-inclusive offer, EI closes its second investment with the Terranum Group. Its first was the 2011 investment in Terranum Corporate Properties, Colombia’s leading office and warehouse property owner/developer. EI’s investment in Terranum Hotels supported the Decameron acquisition.
Decameron Hotels & Resorts, headquartered in Cartagena, Colombia, was founded in 1987 by Argentine Lucio García. The company, a leader in the Colombian hospitality industry, is known for its comprehensive and efficient operating model. Decameron is also known for its flagship All- inclusive vacations, a line of high-quality, affordable resorts. Additionally, the Company manages a proprietary supply channel through its in-house tour operator and branded vacation club. Decameron Hotels & Resorts is focused on South and Central America, with properties in Colombia, Mexico, Peru, Ecuador, Panama, El Salvador, Jamaica and soon Chile.
Terranum Hotels, a business unit of Terranum Group, develops, acquires and operates hotels in strategic markets throughout Latin America. Thus, it has assembled a portfolio of internationally branded hotels, primarily in Colombia, Costa Rica and El Salvador. Its partners include Starwood Hotels & Resorts and Marriott. In 2014, Terranum Hotels will open the first W hotel in Bogotá.
Terranum Group’s Decameron Hotels & Resorts acquisition includes 27 owned, leased and managed hotels in seven countries including Colombia (13), Mexico (3), Jamaica (2), Peru (3), El Salvador (1), Ecuador (2) and Panama (3), totaling 7,561 hotel keys. Lucio García will continue to serve as Decameron’s President.
“This operation allows us to merge into a single company, Decameron’s All-inclusive recognized business model’s track record with the strength of Terranum Hotels. In addition, with this announcement, two teams with a unique and specialized experience in the industry integrate,” stated José Ignacio Robledo, President of Terranum Group.
Regarding EI’s participation as a strategic partner, Mr. Robledo said: “It is a matter of great pride to be able to once again have the support of Equity International, which due to its global and successful experience, is renowned as one of the leading investment companies in the real estate sector. This partnership will allow us to accelerate our regional growth.”
“The Decameron platform serves and profits from the demand of the emerging middle class in Latin America, a highly compelling, fundamental driver across the key geographies where it operates,” said Tom Heneghan, CEO of Equity International. “This transaction marks EI’s second investment in Colombia, a market we continue to be enthusiastic about. We are delighted to join forces once again with such distinguished partners as the Terranum Group and the Santo Domingo Group as we propel the institutionalization of the Colombian real estate sector.”