BTG Acquires 18 Hotels in a Billionaire Deal Including Two Iconic Properties in Rio de Janeiro, Brazil

Although not yet officially announced, REsource uncovered that R$1.7 billion will be paid for 18 properties

Michel Wurman, Head of Real Estate Investments at BTG Pactual

By: SiiLA News

10/14/2024

REsource has confirmed that BTG Pactual’s asset management team is closing a billion-dollar deal for hotel acquisitions in the Rio-São Paulo corridor. The amount, over R$1.7 billion, will be used to purchase 18 hotels, positioning BTG as the largest player in the market.

The entire operation is being conducted through three of BTG’s investment vehicles: Maxinvest (HTMX11), BTG Hotéis (BTHI11), and an institutional fund currently under structuring. Thus, the capital being invested is not from BTG’s own resources.

The acquisition will be officially announced after the transaction’s closing, expected at the turn of the year. The anticipated returns are one of the deal's key attractions, with reports indicating a double-digit CAP RATE.

Read more: Among Dust and Memories: The Reality of Abandoned Buildings in Rio de Janeiro

Properties

Two standout properties in this transaction are the Sofitel Ipanema and Fairmont, both located in Rio de Janeiro, accounting for 65% of the total deal value.

The Sofitel Ipanema has been closed since 2019, and after the resumption of renovation works, the property is expected to reopen in 2026. In Santa Teresa, Rio de Janeiro, there are two hotels requiring renovation: MGallery and Mama Shelter.

Mama Shelter has been closed since the pandemic and requires investment for reopening. These two hotels in Santa Teresa represent a smaller portion of the acquired properties, with around 100 rooms combined.

In São Paulo, the properties have a different profile, focusing more on the corporate market. The list includes hotels like Pullman Vila Olímpia, Pullman Guarulhos, several Ibis properties, and others.

Funds

The acquired hotels will become part of a premium asset family already included in HTMX11 and BTHI11 funds. Maxinvest holds stakes in assets like Blue Tree Faria Lima, various Estanplaza hotels, Ibis, and Intercity properties. The portfolio also includes Meliá Jardim Europa, Nobile Paulista Prime, Staybridge São Paulo, Tryp Iguatemi and Paulista, and Wyndham Berrini.

BTG Hotéis features a more diversified portfolio, including Ibis hotels across several Brazilian capitals, Novotel properties in Curitiba and Porto Alegre, and Pullman Ibirapuera in São Paulo.

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