Hyatt Forms Joint Venture with Developer FSA Group S.A. for Nine Hyatt Place Hotels in Brazil
June 18, 2013 3:13pm
CHICAGO - June 18, 2013 - Hyatt Hotels Corporation (NYSE: H) today 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 quality 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 & 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. We recently opened our first Hyatt Place in Latin America, in San Jose, Costa Rica in late 2012 and we will open three additional Hyatt Place hotels this year, in Mexico, Panama, and Chile.”
“Working with Hyatt is an important component of our ongoing strategy to help support a future-ready infrastructure for Brazil’s thriving economy,” said Raúl Gonzalez Neira, President and Chief Executive of FSA Group. “Brazil continues to enjoy strong economic growth, and these new high-quality properties aimed at business and leisure travelers will help meet this demand, while also supporting the local economy through both temporary and permanent job creation. Together with Hyatt, with whom we enjoy a long-standing and fruitful relationship, we are looking forward to this latest collaboration.”
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 spacious guestrooms featuring the Hyatt Grand Bed® and Cozy Corner sofa-sleeper, meeting space and 24/7 access to meals and amenities. Hyatt Place was ranked #1 Select-Service Brand by Business Travel News in the 2012 Hotel Chain Survey.
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the rate and pace of economic recovery following economic downturns; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; if our third-party owners, franchisees or development partners are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
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Hyatt Place, a brand of Hyatt Hotels Corporation, offers more than 170 locations throughout the United States, as well as locations in Costa Rica and India. For Hyatt Place information or to make a reservation, call 1-888-HYATT-HP (888-492-8847) or visit www.HyattPlace.com.
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