BHG is currently the third largest hospitality company in Brazil with a hotel portfolio that includes 49 properties and about 8,700 rooms. Approximately 85 percent of this capacity is in the mid-market and budget segments.
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 successful public offering of approximately $200 million.
IFC’s investment will support BHG’s expansion of hotel operations into underserved cities in Brazil, including in the North and Northwest regions, where demand from business travelers is growing. The investment will help create about 4,500 direct jobs during construction and approximately 2,500 permanent direct jobs once new hotels are operational. The hotels will have strong linkages with businesses in other economic sectors such as textiles, construction materials and services, handicrafts, and agribusiness.
BHG is currently the third largest hospitality company in Brazil with a hotel portfolio that includes 49 properties and about 8,700 rooms. Approximately 85 percent of this capacity is in the mid-market and budget segments.
“We value this demonstration of confidence from a world-class institution like IFC,” said Pieter van Voorst Vader, BHG’s Chief Executive Officer. “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.”
BHG will adopt sustainable green building design and construction practices in its new hotels that could help cut save energy use by 20 percent and water use by 40 percent , relative to current designs. It is expected that most BHG’s new hotels will achieve Green Edge status, IFC’s green building certification.
“Our support to BHG is part of IFC’s strategy of working with key companies in the hotel industry who can address accommodation gaps in cities and support Brazil’s economic growth,” said Oscar Chemerinski, IFC Director for Manufacturing, Agribusiness and Services in Sub-Saharan Africa, Latin America and the Caribbean. “We look forward to a long-term partnership with BHG, which has built an outstanding business platform and presence in all key hotel segments and main cities and is looking to expand into more underserved areas.”
The hospitality industry plays a strong role in creating jobs in developing countries, both directly and indirectly through supply chains. IFC’s strategy in Brazil is focused on improving the country’s competitiveness, supporting job creation, infrastructure development and access to financial services for underserved sectors. IFC’s environmental and social standards aim to support sustainable development in various industries in Brazil.
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