Canada Pension Plan Investment Board (CPP Investments) is set to invest around C$200m ($143m) to acquire a 49.5% interest in two Hilton-branded hotels in Brazil.
The investment will be made via a joint venture (JV) with HSI, a Brazilian real estate and private credit investment manager
The JV covers two properties: Hilton Copacabana in Rio de Janeiro and Hilton Morumbi in São Paulo. Hilton Copacabana is a 545-room beachfront hotel overlooking Copacabana Beach while 503-room Hilton Morumbi is a upper-upscale hotel situated in one of São Paulo’s main business districts. Both hotels are currently in the midst of a phased renovation programme.
CPP Investments Latin America real assets managing director and head Ricardo Szlejf said: “The investment in Hilton Copacabana and Hilton Morumbi provides CPP Investments with exposure to high-quality hospitality assets in a sector where we see strong long-term fundamentals supported by resilient domestic demand, growing international demand and a limited supply of new hotel rooms. “Brazil continues to present compelling opportunities for disciplined, long-term investors. “Our partnership with HSI secures access to one of the country’s leading real estate investment managers with deep local expertise and proven execution to help generate attractive long-term returns for the CPP Fund.” The deal grants CPP Investments immediate exposure to Brazil’s hospitality market and formalises a partnership with HSI, which manages $2.5bn in assets. HSI founding partner and CEO Max Lima said: “We are proud to welcome CPP Investments as a partner of HSI. “This partnership is strategic for our firm and reflects the strength of our platform and track record across Brazilian real estate. “We look forward to working together through this hospitality joint venture, as we continue to see solid fundamentals across Brazilian real estate, with strong demand and limited future supply supporting attractive risk-adjusted returns.” “CPP Investments to…