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Darby will be a substantial minority investor in a newly formed company,
Choice Atlantica Holdings, Ltd. The
group expects to develop an estimated 140 hotels in South America over
the next five years.
Choice Atlantica Hotels holds the master franchise agreement to develop
Choice hotel products - Comfort Inns,
Comfort Suites, Clarions, Quality Inns, Quality Suites and Sleep Inns
- in Brazil, Argentina, Chile, Peru, Uruguay,
Paraguay, Ecuador and Bolivia. Darby, whose founder and CEO is former
U.S. Treasury Secretary Nicholas Brady, is a private emerging markets investment
firm based in Washington, D.C.
Under the joint agreement, Choice will identify sites, oversee the development
process and manage the hotels
when they become operational. Additional investors will be brought
in at the property level on a
project-by-project basis.
Darby Managing Director Jose Falconi, who has executive responsibilities
for Darby's Latin American private
equity fund, stated: "There is substantial, unsatisfied demand in South
America for moderately priced, reputable,
well-run hotels. For example, there are currently almost no hotels
that cater to the Mercosur regional travel market. Choice Atlantica has
the right format and the right business strategy to capitalize on this
market need. We think
this is an excellent investment opportunity."
With both development and operations expertise, Choice Atlantica Hotels
often manages the hotels when they
open or are converted. The group has experienced rapid expansion throughout
the last several months and
presently has 37 hotels under development in Brazil, Argentina and
Chile.
"Our partnership with Darby makes tremendous sense to all investors
involved as well as to the markets where
we are developing hotels. We are very optimistic about this new venture
and its potential for investors," said
Greg Ryan, chairman of Choice Atlantica Hotels. "As we have seen from
our present extensive investments in
South America, there are seemingly endless opportunities to develop
high-quality, affordable lodging - such as
the products offered by Choice - throughout South America."
A veteran of the franchise industry in South America, Ryan orchestrated
the development of McDonald's stores
throughout Brazil over a 17-year period and remains chairman of the
board of the organization he founded,
McDonald's Comercio de Alimentos, Ltda., a wholly owned subsidiary
of McDonald's Corporation. McDonald's
is opening approximately one new store in Brazil every four days.
Choice Atlantica Hotels is a subsidiary of Barrington International
Hospitality, one of the world's largest
independent international hospitality management companies, with offices
in Fort Lauderdale, Sao Paulo, Buenos
Aires and Santiago.
Darby Overseas invests in companies throughout Latin America via its
private equity fund, and has other
investment vehicles which invest in other emerging markets' assets.
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