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The Brazilian hotel is the first of a 30-property expansion to take place over the next six years. Trump is on the clock to finish the property before high-spending guests arrive for the Olympics.
Trump Organization, headed by real estate investor Donald Trump, is adding its first hotel in South America, the 171-room luxury Trump Hotel Rio de Janeiro, as part of an expansion of its lodging business.
Brazilian developer LSH Barra SA is building the 200 million real ($82.5 million) project with the help of investment partners, Chief Executive Officer Paulo Figueiredo Filho said at the Americas Lodging Investment Summit yesterday in Los Angeles. Trump Organization, based in New York, is licensing its name and will manage the property, Donald Trump Jr., executive vice president of development and acquisitions for Trump Hotel Collection, said at the conference.
The project is part of the company’s goal to expand to 30 properties in its Trump Hotel Collection by 2020 from eight currently. The existing hotels include the Trump International Hotel & Tower New York and the Trump National Doral in Miami, which the company bought out of bankruptcy for $150 million in 2012 and spent $250 million to renovate.
“Over the last few years, we’ve been trying to grow this business, and we saw an opportunity in the ultra-luxury hotel sector,” Donald Trump Jr. said. “We’re very excited about Brazil and this market.”
Trump Hotel Collection will focus mostly on Asia and the Middle East, Chief Operating Officer Jim Petrus said in an interview at the conference. The company also is in talks to add a hotel on the U.S. West Coast and in the U.S. South, he said.
“Our growth will be a mixture of adding management contracts and also making some equity investments,” he said.
Trump Organization also is adding office space in Rio de Janeiro. Even Construtora & Incorporadora SA, a Sao Paulo-based builder, is developing the Trump Towers Rio, a 5 billion-real office project in downtown Rio. The city is hosting the 2016 Olympics.
The Trump Hotel Rio de Janeiro will feature ocean and mountain views, 11 suites with private plunge pools, a nightclub and a spa, Trump Organization said.
Editors: Daniel Taub and Josh Friedman.
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