Brazil Hospitality Group (BHG) announced a partnership with AccorHotels, which will manage 17 of BHG’s owned hotels. AccorHotels also acquired hotel management company LEBSPE Ltda from BHG for an undisclosed amount.
(Press Release) Brazil Hospitality Group (BHG) announces today the beginning of its partnership with AccorHotels, which will manage 17 of BHG’s owned hotels. AccorHotels also acquired LEBSPE Ltda from BHG, a company that manages The Capital São Paulo Itaim and Grand Plaza São Paulo Jardins hotels, in São Paulo; Soft Inn São Luis, in Maranhão; and Presidente Uberlândia Hotel, in Minas Gerais.
BHG, the largest owner of hotel assets in Brazil, with more than R$ 1.2 billion in properties, will invest approximately R$ 300 million, in the next four years, in the renovation and repositioning of the 17 hotels that will progressively receive the flags of AccorHotels. BHG has also started a total renovation and repositioning of Marina Palace Leblon, in Rio de Janeiro which is not part of the Accor transaction.
The renovation projects will be designed by renowned architects. BHG is excited to add to its real estate portfolio the first MGallery by Sofitel in the luxury category in Brazil, the first Mama Shelter in São Paulo in the lifestyle segment, the first Pullman in Rio de Janeiro, as well as properties branded Grand Mercure, Mercure, Novotel, ibis and ibis Styles.
In parallel to this partnership, BHG continues its expansion in hotel management, with the opening of the Soft Inn Maceió as early as January 2018, which will join the other 16 hotels operating under the Royal Tulip, Golden Tulip, Tulip Inn and Soft Inn.
For Alexandre Solleiro, CEO of BHG, “this partnership gives BHG more flexibility to reposition its hotel real estate portfolio, establishing itself as the largest owner of hotel assets in Brazil. The company also continues its strategy of expansion as an operator, with the opening of the Soft Inn Maceió in January, and in the realization of the various pipeline projects.”
“We are extremely excited to take this important step in executing our vision of making BHG the pre-eminent multi-brand owner and operator in Brazil. We believe combining a comprehensive capital improvement plan with Accor’s iconic brands and global distribution will create substantial shareholder value,” said Josh Pristaw, Vice Chairman of BHG and Senior Managing Director, head of capital markets and co-head of Brazil for GTIS Partners, one of the controlling shareholders of BHG.
Rubens Freitas, Chairman of BHG and Managing Director of GP Investments, added that “precisely now when the Brazilian hospitality market is soft, we will carry on a major renovation program in mostly all of our hotels, so that by 2020 BHG will emerge in a recovering market with a markedly superior hotel portfolio in the country.”