JLL has brokered the sale of two hotels in Argentina to investment funds managed by PointState Argentum for close to $100 million. The properties included in the sale were the Sheraton Buenos Aires Hotel & Convention Center and Park Tower, A Luxury Collection Hotel.
Gregory Rumpel, MD, and Carolina Lacerda, VP, led JLL on the sale with support from SVP Santiago Berraondo.
“This offering gave investors a rare opportunity to acquire 920 hotel rooms in one of the largest cosmopolitan cities in Latin America. Given the positive economic outlook for Buenos Aires and a myriad of demand drivers, both properties are well-positioned for future growth,” Lacerda said in a statement.
The 740-room Sheraton Buenos Aires Hotel & Convention Centre and the 180-room Park Tower, a Luxury Collection Hotel are both located in the Retiro district of Buenos Aires, near retail outlets. PointState Argentum's investment funds plan to completely revamp the hotels once the purchase is finalized.
“Argentina’s economic recovery in 2017, along with its expanding investment possibilities and a series of market-friendly reforms, has helped drive hotel demand to its highest level since 2011. We expect that the economy, and ultimately the demand, will continue to grow at a fast pace given new government policies, the entrance of new low-cost airlines and implementation of tax rebates on lodging for foreign tourists,” Berraondo said in a statement.
JLL’s Hotels & Hospitality Group completed more than $77.5-billion in hotel transactions worldwide over a five-year period. The real estate adviser recently advised the sale of the 114-room James New York Hotel in Manhattan to Thor Equities at the end of December 2017. Meanwhile, JLL is currently marketing the sale of the 94-room Hotel Indigo Glasgow with Cushman & Wakefield on behalf of Glasgow-based private equity manager Maven Capital Partners. The city center hotel sale includes a franchise agreement with IHG.