• Equity International announces investment in Terranum Hotels
(Bogotá, May 8, 2014) The Terranum Group, the integrated platform of investment, development and corporate and institutional real estate services in Colombia, and Equity International (EI), the privately held investor and builder of leading real estate companies outside of the United States, officially closed today on the acquisition of Decameron Hotels & Resorts. The transaction, which marks a milestone in the regional market, confirms the strength of Terranum’s platform and accelerates expansion plans for its Terranum Hotels unit, now the largest hotel platform in Latin America, with great capacity to generate employment and economic growth in each of the countries it operates.
Through this transaction, which allows Terranum Hotels to complement its existing portfolio of city hotels with Decameron Hotels & Resorts’ All-inclusive offer, EI closes its second investment with the Terranum Group. Its first was the 2011 investment in Terranum Corporate Properties, Colombia’s leading office and warehouse property owner/developer. EI’s investment in Terranum Hotels supported the Decameron acquisition.
Decameron Hotels & Resorts, headquartered in Cartagena, Colombia, was founded in 1987 by Argentine Lucio García. The company, a leader in the Colombian hospitality industry, is known for its comprehensive and efficient operating model. Decameron is also known for its flagship All-inclusive vacations, a line of high-quality, affordable resorts. Additionally, the Company manages a proprietary supply channel through its in-house tour operator and branded vacation club. Decameron Hotels & Resorts is focused on South and Central America, with properties in Colombia, Mexico, Peru, Ecuador, Panama, El Salvador, Jamaica and soon Chile.
Terranum Hotels, a business unit of Terranum Group, develops, acquires and operates hotels in strategic markets throughout Latin America. Thus, it has assembled a portfolio of internationally branded hotels, primarily in Colombia, Costa Rica and El Salvador. Its partners include Starwood Hotels & Resorts and Marriott. In 2014, Terranum Hotels will open the first W hotel in Bogotá.
Terranum Group’s Decameron Hotels & Resorts acquisition includes 27 owned, leased and managed hotels in seven countries including Colombia (13), Mexico (3), Jamaica (2), Peru (3), El Salvador (1), Ecuador (2) and Panama (3), totaling 7,561 hotel keys. Lucio García will continue to serve as Decameron’s President.
“This operation allows us to merge into a single company, Decameron’s All-inclusive recognized business model’s track record with the strength of Terranum Hotels. In addition, with this announcement, two teams with a unique and specialized experience in the industry integrate,” stated José Ignacio Robledo, President of Terranum Group.
Regarding EI’s participation as a strategic partner, Mr. Robledo said: "It is a matter of great pride to be able to once again have the support of Equity International, which due to its global and successful experience, is renowned as one of the leading investment companies in the real estate sector. This partnership will allow us to accelerate our regional growth."
"The Decameron platform serves and profits from the demand of the emerging middle class in Latin America, a highly compelling, fundamental driver across the key geographies where it operates," said Tom Heneghan, CEO of Equity International. "This transaction marks EI’s second investment in Colombia, a market we continue to be enthusiastic about. We are delighted to join forces once again with such distinguished partners as the Terranum Group and the Santo Domingo Group as we propel the institutionalization of the Colombian real estate sector."
About Decameron Hotels & Resorts
Decameron Hotels & Resorts, headquartered in Cartagena, Colombia, is comprised of more than 30 hotels in 10 countries throughout the Caribbean, Central America, South America and Africa, offering “All Inclusive” vacations. Founded in 1987 by Argentine Lucio García, Decameron is known to implement comprehensive and efficient operation that offers unique, high quality vacation experiences. Decameron Hotels & Resorts has received several prestigious awards such as “Excellent Service and Quality” awarded by Air Transat Group Toronto, Canada, and “High Standard of Service and Quality awarded by Air Tours Holidays, United Kingdom. For more information please visit www.decameron.com.
About Terranum Hotels
Terranum Hotels, a business unit of Terranum Group, develops, acquires and operates hotels in strategic markets throughout Latin America. Terranum Hotels, headquartered in Bogota, owns the Decameron Hotels & Resorts platform and partners with international brands for the operation of some of their other properties. Thus, Terranum Hotels has a portfolio of international hotel brands in different segments. Its current partners include Starwood Hotels & Resorts and Marriott.
About Terranum Group
The Terranum Group is the first platform in comprehensive investment, development, and corporate and institutional real estate services in Colombia, owned by the Santo Domingo Group and the investment bank Estrategias Corporativas. Terranum Group is made up of six business units, through which organizations and investors will find a knowledgeable and experienced business partner in corporate and real estate matters. The six business units are: Terranum Investment, Terranum Capital, Terranum Corporate Properties, Terranum Hotels, Terranum Architecture and Terranum Administration. For more information please visit www.terranum.com.