BHG and AccorHotels announce a partnership to manage 26 hotels in Brazil

BHG is the largest owner of hotel real estate in Brazil and the third largest hotel management company. As soon as the transaction is completed, BHG will maintain a leadership position as a hotel management company, operating 20 hotels with 3,700 rooms in all categories, including the management of Marina Palace Hotel, a landmark hotel in Rio de Janeiro, Brazil.

The portfolio managed by AccorHotels includes hotels of economic, medium and high standard categories in several of Brazil’s main states, such as Rio de Janeiro, São Paulo, Pará, Paraná, Rio Grande do Sul, Pernambuco, Mato Grosso, Bahia, Minas Gerais and Maranhão.  Such portfolio will be progressively renewed and repositioned until the end of 2019, and  will operate under the brands ibis, ibis Styles, ibis Budget, Mercure, Novotel,  Mama Shelter, MGallery and Pullman.

Alexandre Solleiro, CEO of BHG said: “We are thrilled with the opportunities that this ransaction creates for our company, our business partners and our teams. Because 100% of the resources generated  from  this  transaction  will  be  reinvested  in  our  owned  hotels,  we  will  be  able  to accelerate the repositioning and performance of BHG as a leading owner of hotels in Brazil.”

Solleiro further mentioned: “In addition, we will also be able to better focus our resources and management teams in the development of our business of managing third party hotels through our owned (Soft Inn, Solare and The Capital) and licensed brands (Royal Tulip, Golden Tulip and Tulip Inn).”

Rubens Freitas, Partner of GP Investments and Chairman of BHG said: “This transaction is one more step in the process of value creation that started when we founded BHG back in 2007, for which GP remains fully committed to.”

Josh Pristaw, Senior Managing Director, co-head of Brazil and head of capital markets at GTIS

Partners  said:  “This  transaction  represents  an  important  milestone  in  our  strategic  plan  to unlock the value in BHG’s irreplaceable portfolio of high quality Brazilian hotel assets through capital  improvements  and  repositioning.  Further, we look  forward  to  continuing  to  support BHG’s growth as a leading hotel operating platform in Brazil.”Sebastien  Bazin,  Chairman  &  CEO  of  AccorHotels  said:  “Today’s  Brazil  is  a  land  of  major opportunities. This transaction is a new milestone in the history of AccorHotels in this country, where we have been a firm leader for decades. It will bring new landmark hotels as well as an increased brand awareness across all segments.  It also anchors a strong and long-term relationship with BHG, one of the largest owners of hotel real estate in Brazil, which will bring incremental growth opportunities going forward.”

BHG was advised by Avington and Accor was advised by Itaú BBA. Both companies expect that the transaction will be completed in the last quarter of 2017, after approval by the Administrative Council of Economic Defense (CADE).

ABOUT BHG

BHG, third largest hotel chain in Brazil, has as its mission to host and make people feel good. The company owns and manages a portfolio of more than 50 hotels, of which 17 are prime locations in the economic, mid-scale, up-scale and luxury segments. The group, recognized for its multibrand  management  /  operator  expertise,  represents  Royal  Tulip,  Golden  Tulip  and  Tulip  Inn brands in Brazil. BHG also has hotels with their own flags, such as Soft Inn, and hotels without flags,  such  as  Marina  Palace,  in  Leblon  –  Rio  de  Janeiro  and  The  Capital,  in  São  Paulo.  The company focuses on the modernization of its hospitality  and products, the implementation of most  advanced  methods  and  technology  of  management  and  distribution,  as  well  as  the evolution of the service provided to all those who travel for leisure or business. Headquartered in Brazil, BHG is committed to the development of the sector in the country and is looking for business opportunities.

ABOUT GP

GP Investments is a listed company since 2006 with USD 1 Billion in proprietary capital. Since its inception  in  1992,  the  company  has  raised  approximately  US$5.0  billion  from  international investors and has acquired 54 companies in 16 sectors, including Telecom, Logistics, Retail, Real Estate,  Consumer  Goods,  Education  and  Insurance  Services.  GP Investments has followed a consistent and disciplined Investment strategy targeting established companies that have the potential, through hands on approach and active management, to grow and to be more efficient and profitable, becoming the leaders in their respective industries. GP Investments currently has offices in Bermuda, US, UK and Brazil.  For further information, please visit www.gpinvestments.com.

ABOUT GTIS PARTNERS

GTIS Partners is a global real estate investment firm headquartered in New York with offices in Los Angeles, San Francisco, Houston, Atlanta, São Paulo, Paris, and Munich. GTIS Partners has 85 employees and had approximately $3.8 billion of assets under management as of September 2016. To date, the firm has committed capital to residential, retail, industrial, office, hotel and mixed-use projects in the U.S. and Brazil. In the U.S., GTIS has committed over $1.5 billion of equity and debt to 91 projects in 22 states. In Brazil, GTIS has invested in 91 assets comprised of approximately 13,000 planned or completed residential units, over 530,000 square meters of planned or completed office and industrial space, and over 9,800 hotel rooms owned, managed, or  under  development.  By combining  hands-on  real  estate  expertise  with  a  disciplined investment approach, GTIS Partners helps create value for its investors and partners. The firm pursues  opportunistic  real  estate  investments  through  direct  equity  investment  and  nontraditional  lending  activities  and  the  firm  relies  on  macro-research  as  well  as  the  hands-on industry knowledge of its experienced investment and asset management teams. For further information, please visit www.gtispartners.com.

ABOUT ACCORHOTELS

AccorHotels  is  a  world-leading  travel  &  lifestyle  group  and  digital  innovator  offering  unique experiences in more than 4,000 hotels, resorts and residences, as well as in over 3,500 of the finest  private  homes  around  the  globe.  Benefiting  from  dual  expertise  as  an  investor  and operator  through  its  HotelServices  and  HotelInvest  divisions,  AccorHotels  operates  in  95 countries.  Its  portfolio  comprises  internationally  acclaimed  luxury  brands  including  Raffles, Fairmont,  Sofitel  Legend,  SO  Sofitel,  Sofitel,  onefinestay,  MGallery  by  Sofitel,  Pullman  and Swissôtel;  as  well  as the  popular midscale  and  boutique  brands of  Novotel,  Mercure,  Mama Shelter and Adagio; the  in-demand economy brands including ibis, ibis Styles, ibis budget and the regional brands Grand Mercure, The Sebel and hotelF1. With an unmatched collection of brands and a rich history spanning close to five decades, AccorHotels, along with its global team of more than 240,000 dedicated women and men, has a purposeful and heartfelt mission: to make every guest Feel Welcome. Guests enjoy access to one of the world’s most rewarding hotel loyalty programs – Le Club AccorHotels.  AccorHotels  is  active  in  its  local  communities  and committed  to  sustainable  development  and  solidarity  through  PLANET  21,  a  comprehensive program that brings together employees, guests and partners to drive sustainable growth. Accor SA  is  publicly  listed  with  shares  trading  on  the  Euronext  Paris  exchange  (ISIN  code: FR0000120404)  and  the  OTC  marketplace  (Code:  ACRFY)  in  the  United  States.  For more information and reservations visit accorhotels-group.com or accorhotels.com. Or become a fan and follow us on Twitter and Facebook.

 

For further information:

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