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Hotels in São Paulo Capital Investment Exceeds US $230 million |
| São Paulo, November 6, 2000 - By the end of 2003, Choice Atlantica
Hotels, South America’s second largest independent hospitality company,
will operate 18 hotels with 3,978 rooms in the greater metropolitan area
of São Paulo. The hotels represent a total capital investment of
some $230 million and nearly 25 percent of the city’s projected three-
and four-star hotel room inventory. Most of these rooms will fall into
the mid-level or limited-service hotel categories, supplying travelers
to the globally recognized business destination with lodging options that
have never before been available.
São Paulo has been a top development priority for the four-year-old company from the start. “São Paulo is a dynamic, world-class city that has garnered the attention of business leaders throughout the world, and we plan to take a leading role in this city’s continued growth for years to come,” said Paul J. Sistare, president and CEO of the São Paulo-based company. “We continue to encounter tremendous positive feedback from both investors and guests because our hotels - primarily affordable mid-level or limited-service properties - represent a new product category in a location where expensive hotels were the only other option.” With a population of 12 million, São Paulo is one of the largest cities in the world, but it has been significantly under-served by the mid-market hotel industry. A recent article in LatinCEO magazine said “...while the five-star sector in Brazil’s top cities has been well served, the middle market - quality three- or four-star hotels - has been abandoned for decades.” “Although there are other hotel companies that have expanded as rapidly
in São Paulo, but we’ve tried to be more strategic in our site selections,”
said Sistare. “Our primary concern is protecting and growing our clients’
investments, not putting a product on every corner and cannibalizing market
share.” Sistare said Choice Atlantica Hotels’ current properties have experienced
a 34 percent increase in revenue over the prior year and command a collective
20 percent premium in room sales index.
During 2002, 12 hotels will open in quick succession in major locations
throughout São Paulo. They are: Quality Suites Alvorada, 276 rooms;
Clarion Hotel Alphaville, 120 rooms; Comfort Suites Alphaville, 320 rooms;
Quality Suites Bela Cintra, 344 rooms; Quality Suites Faria Lima, 164 rooms;
Quality Hotel Anhembi, 312 rooms; Quality Hotel & Suites Congonhas,
520 rooms; Comfort Hotel Nova Paulista, 173 rooms; Comfort Hotel Jardins,
170 rooms; Quality Hotel Ibirapuera, 168 rooms;
Choice Atlantica Hotels has attracted the attention of investors interested in South America including Nicholas F. Brady, former U.S. Secretary of the Treasury. Brady’s international investment fund, Darby Overseas Investments, made a major investment in CAH that will help the group achieve its goal of 140 hotels by 2003. Choice Atlantica Hotels presently operates 11 hotels with 55 under construction. The group will open one hotel per month for the foreseeable future and is currently signing agreements for development of an additional two hotels every month. Choice Atlantica Hotels is an independent management company with a focus on hotel development in the countries of Brazil, Argentina, Chile, Peru, Ecuador, Uruguay, Paraguay and Bolivia. In addition to its headquarters in São Paulo, the company has regional offices in offices in Buenos Aires and Santiago and an administrative office in Fort Lauderdale. |
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Mona Mesereau Choice Atlantica Hotels (1) 303-841-1511 mona_mesesereau@msn.com |