CHICAGO—Hyatt Hotels Corporation announced the execution of an agreement to form a joint venture between a Hyatt affiliate and FSA Group S.A. (FSA), a Libra Group company, to develop and own nine Hyatt Place-branded hotels in Brazil. The total investment from Hyatt and FSA for the development of these hotels is expected to be approximately US $270 million.
The hotels will be located in key cities and towns that have established commercial and industrial infrastructure and will help meet the growing demand for accommodation across Brazil. It is anticipated that the first of these new properties will open in 2016.
“This joint venture represents the next phase of Hyatt’s expansion in Latin America, and we are thrilled to work with an experienced developer that can help bring the Hyatt Place brand to one of the largest countries in the world,” said Pat McCudden, senior vice president, real estate and development – Latin America and Caribbean, Hyatt Hotels and Resorts. “Throughout Latin America, the select service segment is significantly underserved. Our U.S. guests have embraced the Hyatt Place brand and we believe that by tailoring the design and amenities specifically for the Latin American market, the brand will be equally successful in Brazil and throughout the region.”
FSA Group will manage and coordinate the development of the nine Hyatt Place hotels, and have deployed design and construction teams in Brazil to handle all aspects of project management. Hyatt will manage each of the Hyatt Place hotels.
The hotels, which will range from 150 to 200 rooms, will be located in urban, suburban, and airport locations. Each hotel will offer guestrooms featuring the Hyatt Grand Bed and Cozy Corner sofa-sleeper, meeting space, and 24/7 access to meals and amenities.