GTIS Partners has exited LA Hotels and LA Serviços, from Brazil Hospitality Group, with a sale to Louvre Hotel Group. The transaction marks the entrance of Louvre Hotel Group in the Brazilian market.
(Global Legal Chronicle) BHG, LA Fundo de Investimento em Participações Multiestratégia (and funds managed by GTIS Partners which invest in LA FIP) executed the sale to Louvre Hotels Group of LA Hotels and LA Serviços, which were the entities within the BHG Group still involved in the hotel management services following the completion of the sale of a management platform to Group Accor in 2017.
This complex and innovative deal was part of a continuing and ongoing corporate reorganization of BHG, involving the spun-off of the hotel management services platform and divestment from such business to allow BHG to focus on its core business.
BHG was the exclusive distributor and representative of Louvre Hotels Group in Brazil and had the license to operate and manage hotels in Brazil under Louvre’s trademarks.
As a result of changes in the strategic plan of BHG in Brazil, the company decided to no longer be involved in the hotel management services business but to focus on its real estate and hotel portfolio (which makes BHG the largest company in the industry in Brazil).
The transaction was structure in an innovative and complex multi-step deal to allow the termination of the previous commercial relationship between BHG and Louvre, the preservation of the platform and its sale to Louvre (even after the closing of a previous transaction between BHG and Group Accor, whereby other significant portion of the hotel management business had already been sold) and the personnel linked to this business.
The transaction also marks the entrance of Louvre Hotel Group in the Brazilian market with a significant and well-established basis of hotels under its management and the opportunity to expand its business and brand awareness in the near future.
The transaction closed on December 12, 2018
Pinheiro Guimarães advised BHG, LA Fundo de Investimento em Participações Multiestratégia with a team including Rodrigo Marcilio (Picture), Ana Carolina Cassins (partner), Heber Sacramento (partner) and Caio Ferreira (associate)
Marteens & Tognotti Advogados advised Louvre Hotels Group with a team including Georges Marteens Louis Filho.