Taking Action

During the period leading up to the economic collapse, the Argentine peso was artificially pegged to the dollar on a one-for-one basis. This action artificially inflated the cost for foreigners to visit Buenos Aires and consequently reduced the volume of tourism and the demand for development of additional hotel infrastructure. In recent years, the situation has dramatically reversed - demand has far exceeded the supply of quality hotel and other tourist-oriented facilities, especially in the category of premium intimate properties. I have spent a lot of time since my first visit to Buenos Aires both studying and focusing on the hotel sector of this rapidly rebounding city. In January 2007, my company InvestProperty Group closed on the purchase of a magnificent old mansion located in Buenos Aires’ most elegant residential neighborhood, Recoleta. This neighborhood is truly unbelievable. It’s like the Beverly Hills of Buenos Aries. It’s known for its broad tree-lined avenues, fashionable boutiques, high-end restaurants, cafés, art galleries, and exquisite French architecture. I can’t go on enough about this place, it’s unquestionably the city’s most cultured neighborhood, and that’s why I thought it would be the ideal location for IPG’s flagship luxury boutique hotel, “Algodon Mansion.” I’m out of time for today, but I’ll write more about this project in my next entry.