On behalf of Marriott International (NYSE: MAR), Jones Lang LaSalle Hotels announced today the sale of the JW Marriott Rio de Janeiro on Copacabana Beach to Host Hotels & Resorts, Inc. apartment
(NYSE: HST) for $47.5 million in cash, with capital invested for continued improvement. Marriott will run the hotel on behalf of Host under a long-term management arrangement following the sale.
The JW Marriott Hotel Rio de Janeiro is one of the city's premier luxury hotels, located across from the world-famous Copacabana Beach and close to the city's central business district.
"Host's purchase of this trophy asset is a very strategic decision. "Host was able to gain a fee-simple stake in an extremely high-barrier-to-entry position in a market that is the at an exponential rate," said Gregory Rumpel, executive vice president of Jones Lang LaSalle Hotels in Miami.
Brazil's economy is the eighth largest in the world (World Bank 2009 GDP Ranking) and is expected to rise to fifth place by 2016. In addition to the country's remarkable economic growth, Brazil and Rio de Janeiro will host the 2014 FIFA World Cup and the 2016 Olympic Games, two of the world's most prestigious sporting events, in just two years, benefiting the JW Marriott Rio de Janeiro greatly.
"The JW Marriott represents a fantastic outcome for all parties involved and exemplifies the ongoing transaction climate in Rio de Janeiro, as many of the market's big assets have traded in the last 24 months," said Ricardo Mader, executive vice president of Jones Lang LaSalle Hotels in So Paulo. "The JW Marriott is exciting for us, as is our continuing momentum in the transaction services market in Brazil."
The 245-room hotel is in the heart of Rio de Janeiro, the most visited city in Brazil. Rio de Janeiro is the fourth most popular tourist destination in the Americas, with over 5 million visitors annually; Rio de Janeiro accounts for 32 percent of all visitors to the region. The JW Marriott is directly across from Copacabana Beach, Rio de Janeiro's most popular beach, which hosts a variety of activities and attracts millions of tourists each year.