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 •
For the past few years, the talk of The Lodging Conference in Phoenix had been focused on the economic recovery, solid industry projections and “cautious optimism.” With the word cautious no longer necessary, the economic outlook took a backseat this year to the seemingly unending parade of new lifestyle brands.