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a High-rise Design and a Two-three-story Hotel |
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São Paulo, November 12, 2001 � With the opening of the country�s third Sleep Inn, the unveiling of a high-rise design and traditional two- and three-story prototypes, and the announcement of eight hotel projects in the next few months, Atlantica Hotels International is firmly establishing the Sleep Inn concept in Brazil. �For the past two years we have been building a foundation for the Sleep Inn concept and have proved that it works in a country accustomed to full-service hotels,� said Paul J. Sistare, president and CEO of Atlantica Hotels International. �Our initial Sleep Inn properties are demonstrating that high construction standards, excellent service, affordable room rates, high rates of returns with immediate cash flows and worldwide franchise support are popular among both hotel investors in South America and travelers.� Three Properties Show Immediate Success The Sleep Inn Varginha, a 66-room hotel is located in the city of Varginha in the heart of South of the state of Minas Gerias in Southeastern Brazil, has already achieved 80 percent occupancy and positive cash flow since it opened last month. The hotel offers two swimming pools, fitness center, business center, meeting and conference facilities, lobby bar, high-speed Internet access, comfortable work stations, free parking and complimentary breakfast included in the rate. The 108-room Sleep Inn Galeria, located west of the city of São Paulo, achieved 75 percent occupancy 45 days after opening in July 1999, and the occupancy levels have continued to grow. The 118-room Sleep Inn in Ribeirão Preto, Brazil, west of Campinas opened in January 2000 and began distributing positive cash flow within 60 days after opening. Average occupancy levels have exceeded 75 percent. New Sleep Inn Prototypes At the same time, Atlantica has unveiled new Sleep Inn prototypes � including a high-rise design and traditional two- to three-story product. The first of the new prototypes is anticipated to be a 300-room high-rise in the city of São Paulo. �We have re-engineered the Sleep Inn product and significantly reduced construction costs resulting in a hotel that is even more attractive to hotel investors,� said Sistare of the new prototype. �The economic conditions in Brazil are very favorable for branded hotels in the economy sector.� Sistare said the Sleep Inn prototype can be constructed turnkey � including land costs � for approximately US$20,000 per room. The prototypes include all of the finishes and services of traditional Sleep Inns including mandatory meeting facilities, fitness centers and business centers. The first of the Sleep Inn prototype projects is well underway and additional details will be announced soon. Aggressive Expansion Underway Atlantica Hotels plans to aggressively expand its Sleep Inn chain with an additional eight hotel projects. Details of the projects will be announced soon. The company is also in the final stages of securing sites and financing in several major locations throughout Brazil. Formed in 1998, Atlantica Hotels International is South America�s first traditional hotel-management company and largest operator of multiple hotel brands in South America today. The company operates selected brands from Choice, Radisson and Starwood hotels. Based in São Paulo, Atlantica Hotels International has more than $750 million in assets under management. The company presently operates 17 hotels and has 56 hotels under construction and 28 under development. The company is adding an average of two contracts per month and is opening one new hotel approximately every 20 days. While Atlantica Hotels International will continue hotel development and operation throughout South America, primary development focused on the countries of Brazil, Argentina, Chile and Uruguay. Chairman of the company is Gregory Ryan, a graduate of Cornell University�s hospitality management program. Ryan is known throughout Brazil for his overwhelming success as the founder of McDonald�s restaurants in that country. Shortly after Ryan joined the company, Nicholas Brady, former U.S. Secretary of the Treasury and architect of the �Brady Bonds,� invested in the company through his Darby Overseas Investments fund. Mr. Brady presently serves as Vice Chairman of Atlantica Hotels International. |
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Mona Mesereau (1) 720-842-5271 [email protected] |
| Also See | With Occupancy Declining and RevPar Plummeting, HSMAI Asks GM's 'Are You Doing All You Can to Compete in Troubled Times?' / Sept 2001 |