IFC Invests $25M in BHG
Monday May 6th, 2013 - 10:10AM SZ
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RIO DE JANEIRO—IFC, a member of the World Bank Group, has become an anchor investor in BHG S.A.- Brazil Hospitality Group with a $25-million equity investment during the company's recent public offering of approximately $200 million.
BHG’s hotel portfolio currently includes 49 properties and about 8,700 rooms. Approximately 85% of this capacity is in the mid-market and budget segments.
According to the company, IFC's investment will support BHG's expansion of hotel operations into underserved cities in Brazil, including in the North and Northwest regions. The company expects to help create roughly 4,500 direct jobs during construction and approximately 2,500 permanent direct jobs once new hotels are operational.
Pieter van Voorst Vader , BHG's CEO, said in a statement, "In addition to IFC's financial support, its technical expertise will help us develop green-building certified new hotels under our budget and economy brands."
Tags: • Hospitality • Sources of Funding • Investment Funds •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.