Algodon Mansion

“Perhaps the most tangible sign of Argentina’s economic recovery, is its booming real estate market, which has transformed Buenos Aires, the capital, into a construction site.” - The Wall Street Journal

I love that quote. Tourism in Argentina is thriving right now, and has been for the last several years. I see it every time I go down there, and my favorite hotels are always almost booked to capacity. Argentina is literally the leading tourism destination in all of Latin America, and had over 4.5 million visitors in 2007. The Argentine Tourism Office says that visitors from the US alone grew more than 35% between 2005 and 2007. I like those numbers! 2.2 million foreigners visited Buenos Aires last year, and Buenos Aires City Tourism Bureau did a study that found foreign tourists prefer four and five star hotels (who doesn’t?), and that 2007 occupancy rates exceeded 85%. Things are looking good for our hotel project.

The mansion we purchased is absolutely amazing. It was previously a private residence and is located at 1647 Montevideo Street in the heart of the embassy and luxury hotel district, Recoleta. The Mansion is a magnificent 20,000 sq/ft estate that was built in 1912. It’s a 5-story building, but we added a subbasement during the renovation, bringing it to 6-stories. The architectural team we decided to use for the renovation is headed by internationally acclaimed architect, Gerhard Heusch. He’s got a great portfolio, and I’ve had the pleasure of seeing some of his past projects in person, including The Grand Havana Room in both New York and LA.

The hotel will feature 10 luxury suites, a 5-story hanging garden, and rooftop pool, spa, and bar. Watching the completion of this project has been a real experience. These days, I get down there to oversee the project just about every other week. One of the highlights for me has been the construction of the rooftop pool. Wow. It’s going to be truly fantastic. The hotel is also going to have a restaurant featuring South American & French-fusion cuisine, a private dining room with a wine cave and humidor, library bar, wine cellar, and an outside dining patio that features an A-framed glass ceiling. This project has become very personal to me, and I have to say that I’m quite proud of it.

With Gerhard’s help (as well as the rest of our incredible work team down there), Algodon Mansion should be opening its doors in December. That’s right around the corner, and we’re all very excited about it. The plan is to have a wonderful New Year’s opening party for our partners and friends. I’m looking forward to it.

I’ll be here next week with more about Algodon Mansion…Gotta go, I have work to do!

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.