Blackstone buys Rio hotel, taps Hilton to manage

(Hilton Rio de Janeiro Copacabana)

The Brazil World Cup and the Rio de Janeiro Olympics are long over, but Rio's appeal for global hotel investors is still solid.

In the city's most recent hotel announcement, funds managed by Blackstone's real estate business will be used to acquire the Windsor Atlantica Hotel on Copacabana Beach. As part of the transaction, Blackstone has signed an agreement with Hilton to manage the asset. When the transition period is completed, the hotel will reopen as the Hilton Rio de Janeiro Copacabana. Financial terms of the transaction were not disclosed.

The 39-floor, 545-guestroom beachfront hotel was renovated in 2011 by Windsor Hotels, its current owner and operator, and is a main destination for both business and leisure travelers.

“We are excited to acquire this one-of-a-kind premier hotel in Brazil and have been deeply impressed by Windsor’s stewardship of the asset,” Marcelo Fedak, head of Brazil for Blackstone, said in a statement. “In line with our ongoing engagement with the Brazilian market and in close partnership with Hilton, we are pleased to expand our presence in the hospitality sector where we see continuing opportunity.”

“Hilton is focused on continued growth in Latin America and this exciting project with Blackstone allows us to expand our flagship Hilton Hotels & Resorts brand to one of the most sought-after beach destinations in the region,” E. Fabian Rodriguez Suarez, managing director development, Brazil and the Southern Cone Region, Hilton, said. “Brazil is a key market for Hilton’s expansion efforts, and the signing of Hilton Rio de Janeiro Copacabana reinforces our strategy to deliver value for our customers, hotel owners, and shareholders.”

Hilton also manages the two-year-old, 298-room Hilton Barra Rio de Janeiro in the city.