Four seasons defines US$ 235-million investment for Brazil
Valor Econômico
Known as one of the most luxurious hotel chains in the world, the Canadian Four Seasons group has finished its strategic plan to invest in Brazil, after an unsuccessful attempt in the middle of 1997. With 82 hotels in 34 countries and annual earnings of US$ 3.5 billion, the brand intends to inject US$ 235 million in investments in the country over the next five years, with the building of three undertakings. One in São Paulo, another in Rio and a resort on the coast.
Four Seasons' plan in Brazil will be carried out by a 33-year-old Brazilian, born in Natal (State of Rio Grande do Norte). Development Officer of the Chain for Latin America, Alinio Azevedo said he is in contact with local partners, such as real estate companies, in order to form consortia, for instance. According to him, nothing has been closed yet, but the expectation is that the first contract should be closed in 2010 and the works should begin in 2011. "We are bringing to Brazil a product in which our guest goes to the Four Seasons in Paris, in Tokyo and it is familiar to him/her. São Paulo is a world city and will complete our offer", says Azevedo, who gave an interview to Valor during a two-day quick visit to São Paulo.
Azevedo estimates the investment in São Paulo will amount to US$ 100 million for a 200-room hotel. Each Four Seasons standard room costs nearly US$ 500 K. In Rio, there will be another US$ 75 million for an undertaking with up to 150 units. As for the resort the disbursement should amount to US$ 60 million, or 120 rooms. According to the Officers, the Canadian brand enters in the Brazilian market to fight with brands like Hyatt (where they stayed) and players of smaller size, such as Fasano.
"We have discussed how to improve the quality of the hotel chain in Brazil. Four Seasons is known as a premium services company. Its arrival will bring customers from other parts of the world", says the Director of the Brazilian Association of the Hotel Industry (Abih), Alexandre Sampaio.
Four Seasons shall have 10% of interest in each hotel, besides managing the undertaking. The other 90% may be divided by more than one investor. The National Development Bank (BNDES) may be sought, says Azevedo. The institution should announce a specific line for the improvement and construction of hotels until the end of the year.