Argentina News and Truffles
Labels: algodon wine estates, argentina, tourism, truffles
Thanks for visiting my personal blog. For those of you who don’t know me, I am the founder and Chairman of DPEC Partners, and as its driving force I continuously strive to implement my personal vision of creating unprecedented ground-floor investment opportunities for high net-worth investors. My background includes extensive experience in both investment and management, and I have worked in the financial industry for over 20 years.
Labels: algodon wine estates, argentina, tourism, truffles
Labels: algodon wine estates, argentina, great wine capitals, Mendoza, San Rafael
Construction on the mansion is furiously wrapping up to meet our Grand Opening goal date. Algodon Mansion’s General Manager, Pablo Veloso, tells me that the staffing recruitment for the hotel continues and that in just a few weeks the entire staff will be hired and trained. There will be an intensive and thorough 2-week training course for these new employees before any of our guests arrive.
Here’s a recent photo of the tennis center’s progress at Algodon Wine Estates. The photo shows our hardworking maintenance staff as they tend to the huge expanse of the clay courts. The clay court area is so large that our photographer couldn’t fit it all into the frame. It looks fantastic!
As I’m sure many of you have been reading, Argentina is currently in legislation to settle $20 billion of its outstanding bond disputes. This is great news for their economy in my opinion; a successful renegotiation with holders of defaulted debt should create access to international capital markets for the first time since 2001, and will open the door to foreign investment.
Look out- even Wal-Mart is getting into the action of Argentine investments!
Here is an excellent Washing Post article about Nicolás Catena, an Argentine visionary who saw Argentina's potential to produce fine wine. The article dubs him “Argentina’s Ambassador of Wine.” Catena’s is credited as the “founding father of modern Argentine wine”, and as being responsible for having launched Argentina’s wine boom. His significant role in the wine world is further evidenced by Decanter wine magazine’s honoring him as Man of the Year for 2009.
Here’s some very interesting olive oil news; evidently it has just been determined that it may play a factor in preventing Alzheimer’s. Algodon’s gold-medal-winning Extra Virgin Olive Oil isn’t just delicious; it’s also good for you!
One final thought; did you know that the average Argentine eats approximately 163 lbs. of beef every year? That comes out to approximately two McDonald’s Quarter Pounders every day, all year long.
--Scott Mathis
Labels: algodon extra virgin olive oil, algodon mansion, algodon wine estates, argentina, pablo veloso
This design may, for example, appear in on the menu cover, in certain advertising, and on incidentals such as matchbooks or restaurant stationary.
--Scott MathisLabels: algodon mansion, algodon wines, antonio soriano, argentina, buenos aires, CHEZ NOUS, grass-fed beef, patagonia
Labels: algodon malbec classic, algodon wine estates, algodon wines, argentina, bombal and aldao, gerhard heusch, Mendoza, private wine barrel program, tennis
I haven’t shared the grass court photos yet, as they have been under construction. The only thing the grass courts are waiting on now is the seeding. The bulk of the construction for these grass courts has been the drainage system- a very essential element, obviously. Here’s a photo of where the grass courts stand now. Labels: algodon tennis, algodon wine estates, argentina, golf
When I was in Paris on business last weekend, I was invited to an interesting, analogous property to Algodon Mansion, called Pershing Hall. It’s similar to our Buenos Aires hotel in many ways and apparently, it’s a very successful operation. At 350 sq ft, some of their suites are significantly smaller than ours; however they’re getting 500 Euros a night for those. Their top suite is 700 sq ft and it goes for about 1,000 Euros. Their restaurant is one of the most popular in Paris.
Here’s an article from the Washington Business Journal (via the Pittsburgh Business Times) headlined Argentina’s travel industry provides business and leisure. The article talks about what a hotspot Argentina is right now, and its growing appeal to Americans. That’s no news to us!
Lastly, in economic news, Argentine will reportedly pay off its Paris Club debt over the next five years.
--Scott MathisLabels: algodon mansion, algodon wine estates, argentina, CHEZ NOUS
Algodon Mansion gets a nice mention in this month’s Delta Sky Magazine! The write-up acknowledges our restaurant, menu, and accompanying estate-grown Malbec. Although, the restaurant details are a bit outdated…we’re happy to have made an appearance. Delta Sky Magazine reaches 5 million readers each month! Algodon Wine Estates is also featured in Area 3 Magazine, a widely distributed publication in Mendoza. The article, which discusses our newly established international wine panel, is unfortunately not online yet- but I’ll be sure to share it with you once it’s up. In the meantime, here’s a scanned photo from the magazine’s hardcopy.
Score another one for the Argentines! Juan Martin del Potro’s U.S. Open win was a surprise to us all, but I’m not complaining! Argentina is everywhere is sports news these days, and that only means good things for Algodon Wine Estates & Champions’ Club! Our new tennis courts and newly expanded 18-hole golf course are literally weeks away from being ready to play. I wonder how del Potro feels about San Rafael, perhaps we’ll see him at Argentina’s first Algodon Malbec Classic!…In other sports news, Argentina’s Rugby team, Los Pumas, have been invited to join the Southern Hemisphere’s Tri Nations. If everything goes according to the plan, Tri Nations will become “Four Nations” in 2012. While we haven’t any immediate plans to construct a Rugby field at Algodon Wine Estates, you never know what the future holds…2016 perhaps?
Our Executive VP & CFO is in Buenos Aires this week and sent the following email to us soon after his arrival: “I only had a couple of minutes today to see the Mansion, but WOW – it’s a MANSION - it just looks fantastic. A person working on every corner, and the progress is enormous. The stairs are in and some of the rooms are basically finished (without furniture). The kitchen crew is working in the kitchen and the light-well is truly the “show-off” center piece. No doubt we still have a lot of work ahead, but things look great. The master suite bathrooms are enormous and the quality is 100%.” He also sent us some new photo updates from Algodon Wine Estates, including this one of the tennis courts, which by the way are looking tremendous. Thanks for the update, Tim!
Labels: algodon, algodon mansion, algodon wine estates, argentina, juan martin del potro, malbec, Mendoza
Question: Did you have to lay off any staff due to the (economic) crisis? Answer: Actually we hired nine people in Buenos Aires for the mansion; a luxury hotel with a restaurant, bar, and wine cave- and two others for the hotel in Mendoza.
Gerhard Heusch emailed me this morning and once again confirmed that the scheduled Algodon Mansion opening date is still intact. They’re working very hard down there, and the work is going fast!
Algodon Wine Estates gets a tremendous write-up from Jim Bryant for Chicago’s (metro area) “Quintessential Barrington” lifestyle magazine. Mr. Bryant’s glowing descriptions of our estate, our wine, our amenities, and San Rafael- go beyond terrific. He also very favorably mentions our partners at Bombal & Aldao and Finca los Alamos.
In other wine news, The LA Times published an interesting article titled Findings of wine contest study hard for critics to swallow. From the article; “…consumers should not always assume that gold medal winners are outstanding wines…retired Cal State Humboldt professor Robert Hodgson said he looked at the results for more than 4,000 wines entered in 13 U.S. competitions in 2003 and found little consistency in what wines won gold medals.” Our Master of Wine, Antony Foster, followed up on this in an email to me. For the most part, he indicated that he’s in agreement with the article, and that he thinks it would be in our best interest to enter our wines in reputable competitions run under international rules. Good advice.
--Scott Mathis
Labels: algodon, algodon mansion, algodon wine estates, anthony foster, argentina, bombal and aldao, buenos aires, finca los alamos, gerhard heusch, master of wine
Our neighbor next door to the Algodon Mansion recently finished some exterior construction. It looks good and is a big improvement on what was there previously.
Big olive oil news! Diego Coll Benegas, Algodon Wine Estates’ Director of Project Development, Tourism & Hospitality, just emailed me to say that Algodon Olive Oil won the gold medal in a national competition hosted in Buenos Aires this week. Our gold medal was for the “blended” category. That’s exciting news. I’ve had the olive oil myself, and I have to say that a gold medal comes as no surprise to me. I guess we’ll have to reprint our olive oil’s bottle labels to include: “Argentine judges agree: Algodon Extra Virgin Olive Oil is the best!” We will be serving Algodon Olive Oil at Algodon Mansion.
--Scott Mathis
Labels: algodon, algodon extra virgin olive oil, algodon mansion, algodon wine estates, argentina, buenos aires
Anyone who knows me knows that I love tennis, so it will come as no surprise that I am excited about the US Open here in New York. Even more so because our own José Luis Clerc (Algodon Wine Estates’ Ambassador & Director of the Clerc Tennis Academy) will be covering play-by-play analysis for the Spanish-speaking audiences of ESPN International and ESPN Deportes. Algodon properties gets yet another media mention; Examiner.com’s J.S. Fletcher has given both Algodon Mansion and Algodon Wine Estates a nice write up in this week’s issue, which you can check out here.
In wine news, WineSur.com reported this week that Malbec exports have increased significantly this year. We already know this, of course, because we’ve been hearing about it for the last six months; however WineSur provides a chart detailing Malbec’s major importers. The U.S. is in first place with a whopping 52% of the pie chart.
--Scott Mathis
Labels: algodon, algodon mansion, algodon tennis, algodon wine estates, argentina, espn, José Luis Clerc, malbec
I stumbled upon a Brazilian blog that features a write-up of Algodon Mansion. Apparently, even in Brazil we’re getting publicity and getting recognized! The blog (written in Portuguese) belongs to Alexandra Forbes, who regularly writes for Wish Report (the Brazilian equivalent to Robb Report), Vogue, Prazares da Mesa (Brazil’s #1 food magazine), Air Canada’s in-flight magazine and IN (Lan’s in-flight). You can see more about her here: http://www.alexandraforbes.com/. Hopefully we can have her down in person after we’re open.
We are seeing even more articles about the popularity of Argentine wine! The first comes from WineSur.com, and is a brief interview with Napa Valley’s Paul Wagner; president and founder of Balzac Communications & Marketing (a marketing and PR firm representing some of Napa’s most prominent wineries.) Says Mr. Wagner; “Argentinian wines are the new trend and latest fashion; we say that they are "hot" since everybody wants to try them. Malbec's sensory profile is ideal for the Americans' palate since US consumers prefer fruity and easy-to-drink wines. Moreover, prices are competitive and a noticeable growth has been perceived since some years ago.” The second article is from Bloomberg.com and, as the title of the article suggests, is another recession spun piece; New Yorkers Swap Bordeaux for Argentine Malbec as Recession Red. From the article; “These days, people in the Hamptons, a Long Island retreat for financiers and celebrities, aren’t indulging as they used to in high-priced brands…U.S. consumption of Argentine wines is rising as the global recession spurs even the wealthy to hunt for bargains. In the first six months of 2009, imports from the South American country rose 34 percent from a year earlier to $103 million, while mainstays Italy, Australia and France recorded U.S. sales slumps of as much as 30 percent.”
Lastly, on the Argentine economy Reuter’s recently reported that “Argentina can meet its debt obligations this year and in 2010 and a $2.25 billion coupon payment this week proves the government's ability to pay, Economy Minister Amado Boudou said…”
---Scott Mathis
Labels: algodon mansion, argentina, CHEZ NOUS, malbec
Algodon Mansion is also really looking great; I was down there last week. Our management team did a great job of interviewing candidates for the hotel and kitchen. Some of our new hires are from one of my favorite hotels in Recoleta. This is an experienced group that will represent Algodon Mansion well.
I spoke with nearly everyone here and we have all decided to rename (or name; since we never officially decided on one) the mansion’s restaurant to “CHEZ NOUS,” which means “OUR PLACE” in French. Our Buenos Aires crew really likes it and how it works with the property and the concept! The menu at CHEZ NOUS is complete as well, and I believe everyone will love it. We are currently having an English translation of the menu prepared, which we’ll share as soon as it’s finished.
All in all, there has been substantial progress on Algodon Mansion. With most of the larger projects complete, we are now primarily just working on the little details. Everyone down there is working very well together, and they (as much as us in New York) are all very excited to see the finish line and a finished product in the very near future...
The Argentine Post directs us to a nostalgic YouTube video of Argentina’s early years. The 1932 travel newsreel is a classic Metro-Goldwyn-Mayer presentation. As I was watching the video, it struck me that this was the same period in time when José Jurado was first making a name for himself in the international golf world.
--Scott Mathis
Labels: algodon, algodon malbec classic, algodon wine estates, argentina, buenos aires, CHEZ NOUS, Recoleta
I received some great photo updates from Pedro Lagleyze (Algodon Mansion’s Construction & Project Manager) recently, including the following shot of the six-story glass partition in the lightwell that descends to the lobby:
In late November (around the time of Algodon Mansion’s Grand Opening), La Indiana Polo Club will host a post-tournament awards and dinner at the mansion’s restaurant, and cocktails will be served at the rooftop pool bar. This particular tournament is called the J.M Baillieu Cup and it coincides with the Argentine Open. We’ll be having a very busy holiday season this year.
Our Manhattan office recently acquired an authentic “International Newsreel” photograph from 1931 of the Prince of Wales and José Jurado. The gentleman were close friends and known golfing compatriots. José Jurado’s grandson originally developed our San Rafael golf course and winery before it became Algodon Wine Estates. Jurado is hailed as the “Father of Argentine Professional Golf”, and is perhaps best known for his losing stroke to Tommy Armour at the 1931 British Open. His famous double bogey was at Carnoustie Golf Club's 17th hole, and is reproduced on Algodon Wine Estates’ course. Jurado appears in the photo on the far right, and the Prince is next to him:
Bloomberg.com is reporting that Argentina seeks to return to global markets this year after making $2.25 billion in interest payments. “It’s very important to fulfill our obligations, pay the debt so that the country can return to global credit markets before year-end,” Economy Minister Amado Boudou said. Good news for Argentina.
--Scott Mathis
Labels: algodon mansion, algodon wine estates, argentina, Jurado
Labels: algodon wine estates, argentina, gerhard heusch, las lenas, malbec, olive oil
Once again, Buenos Aires has made Travel & Leisure’s “Top 10 World’s Best Cities”. BA is ranked #4 this year (slipping two spots from #2 in 2007 and 2008). The accompanying article touts; “Beyond the “Paris-of-South-America” clichés, this is a city of world-class art, exceptional cuisine, and internationally acclaimed design. After a 2001 crisis battered the nation’s economy and the value of its currency, B.A. became one of the world’s few high-gloss/low-cost travel destinations…”
Finally, there was a great recent article in the New York Times on BA’s “bares notables”. In 1998, the city legislated these “notable bars” (a landmarked status, I suppose) “as the official designation for bars, cafes, billiard halls and confectionaries whose antiquity, architecture or historical significance make them worthy of note and of preservation efforts”. The article details several of these businesses and their unique histories. If you’re making a trip down there anytime soon, be sure to print this one out and take it with you. There are some very interesting places that are perhaps a bit off the beaten tourist track. If you remember, just a few weeks ago I posted about the Times’ take on BA’s Barracas barrio. I’m pleased to see that such a well respected newspaper is continually covering so much of the culture from one of my favorite cities in the world.
Labels: algodon mansion, argentina, buenos aires
“Scott,
Attached I'm sending updated photos of the tennis center construction. The first one corresponds to the twin clay courts to the west, covered with chipped brick:”
“The second picture shows the already leveled site for the four clay courts that will be built next to the first two. There the bricks have to be placed and leveled and the retaining wall needs to be constructed:”
“The third photo shows the single clay court to the east, near the golf fairway:”
Muchas gracias, Señor Rubén. What a great partner we have in Buenos Aires. Without his steadfast force and direction, we would not be seeing such great forward movement. Our construction team has also finished work on the new canal:
Algodon Wine Estates was featured recently in Los Andes newspaper, which may perhaps be described as the “New York Times” of Mendoza. Check it out even if you don’t read Spanish; there are a few corresponding photos…
--Scott Mathis
Labels: algodon tennis, algodon wine estates, argentina, San Rafael
It looks great. We’re just waiting for the aluminum finishing for it to be complete.
The Wall Street Journal gives its readers some ideas of what to do for summer vacation. Titled “Camps for Grown Ups”, one of their recommendations is to attend a summer Wine Camp in Long Island. The camp “covers the topics of vineyard work, the terroir of Long Island, chemistry of winemaking, blending, and food and wine pairing.” This sounds like our own guided tours and tasting seminars at Algodon Wine Estates. Ours include wine descriptions, terminology and practices. People who take our tour get a detailed tutorial regarding vineyards, planting methods, irrigation, climate, and the manual labor involved in maintaining a successful winery. In fact, if the weather is nice on that day, you can even pick your own grapes. The tasting seminars always end with a platter of smoked cuts, artisan cheeses and olives.
By the way, I’d like to wish everyone here in the U.S. a very happy 4th of July! Have a great weekend.
--Scott Mathis
Labels: algodon mansion, algodon wine estates, argentina, wine
Also this week, Algodon gets even more full page write ups; this time in the latest issue of Unique Homes magazine. Titled On Location: The Next Napa Valley. It’s available on your local newsstand, open to page 42! Algodon Mansion also appears at the bottom of the page. Unique Homes magazine focuses on luxury real estate, and targets high-end consumers and sellers. It has a circulation of over 70,000 readers and topics covered include “European castles, oceanfront contemporaries, world-class resort properties and luxurious hideaways.” Algodon Wine Estates is also currently featured on the Elite Traveler website, which receives approximately 80,000 hits per month. We also appear in the newsstand copy of the magazine, which has a circulation of 135,000. They focus on luxury travel and target affluent readers throughout the U.S., so this is another great outlet for Algodon! In just a few weeks we’ll be appearing in United Airlines’ in-flight Hemispheres Magazine which has a print run of 250,000, with a readership of 7.5 million! That’s an incredible number! And last but not least, we also appear in 944 Magazine (circulation: 245,000!) on newsstands now. 944 focuses on fashion, entertainment and luxury lifestyles, with separate editions in Los Angeles, Las Vegas, Miami, Orange County, Phoenix, San Diego and San Francisco. Topics covered include health, fitness, nightlife, restaurants, latest styles and trends, music, art, film, interior design and travel. This has been an amazing month in the media for us!
In other news, Harpers Wine & Spirit online magazine tells us that Argentine wine exports are up in volume and value. That great news in today’s economic climate! Of course, Malbec is the most exported varietal accounting for a hefty 28% of the volume.
--Scott Mathis
Labels: algodon mansion, algodon wine estates, argentina, elite traveler, napa valley, San Rafael, unique homes
Rubén Barsamian sent me the next photo earlier in the week. It shows one of our contractors leveling the courts. As I may have mentioned before, except for the Grand Center Court, as of today the land has all been leveled:
I also received photo updates on the two new reservoirs on our (recently expanded) golf course this week. Here you can see that they have lined the pond in anticipation for its filling:
Very exciting, and all of this will only add even more value to our already remarkable estate.
Earlier this week the New York Times ran this piece on the revitalization of the Barracas barrio in Buenos Aires. This neighborhood is experiencing “spillover rejuvenation from neighboring Puerto Madero and San Telmo, two areas that have benefited from a rise in tourism and a real estate boom. Barracas, near the city’s old ports, means barracks or warehouses. Long since abandoned, many warehouses are being renovated into luxury housing…” Sounds like the “Soho effect”. I’d be curious to know if the article had any immediate impact on real estate sales for the area. I’m betting it did…
--Scott Mathis
Labels: algodon, algodon wine estates, argentina, buenos aires, tennis
--Scott Mathis
Labels: algodon, algodon mansion, algodon wine estates, argentina, buenos aires, cnn, dakar rally, nacho figueras, polo, prince harry, vanity fair
I came across an interesting article in The Washington Post last week about sommelier Mark Slater (a James Beard Foundation award-recipient for his outstanding wine program) who, when asked what his top seller is, says (a particular brand of) Argentine Malbec; "That stuff flies out of here….I sold 15 cases in a week!" On that topic, a recent WineSur.com article talks about the great potential for Argentine wines in the Asian markets. Evidently reasearch says that fine wine consumption in this sector is expected to grow by 79.3% in the next two years. That’s a remarkable number- the population in China alone is 1.3 Billion.
Here we have good news for you racing fans; AP is reporting that Argentina may be hosting a Formula One race next year, probably in Buenos Aires. Be sure to book your rooms at the mansion.
In anticipation of the French Open, The Wall Street Journal ran this fun tennis piece about the joys of playing on a clay court; “Increasingly, some of the game’s best coaches and tennis officials —even in the normally clay-allergic United States —see mastering the dusty red stuff as crucial to achieving all-around greatness.” Ask anyone who knows me and they’ll tell you that I am a huge lover of the game. I’m looking forward to playing on our clay courts, as well as each of our 2 grass courts and our sunken Grand Center Court that seats nearly 700 people. By the way, here’s a photo taken last week of the land being cleared for the courts’ construction:
Hope everyone is enjoying the nice weather!
--Scott Mathis
Labels: algodon, algodon mansion, algodon tennis, algodon wine estates, anthony dias blue, argentina
It looks like the world of Argentine Polo is alive and well, despite any global economic slowdown, according to a recent Reuters article that you can read here. The article also touches on polo tourism and Argentina’s position as the world's top destination for polo. Our polo fields at Algodon Wine Estates, by the way, should be completely excavated and seeded this year. This photo was taken at a recent cocktail party inside the Algodon Mansion amidst all the construction. There was a huge turnout, and it was quite fun. Nacho Figueras and his wife Delfina Blaquier are pictured here with me. Nacho, of course, is a world famous Argentine Polo player and may be the face that most Americans associate with Argentine Polo. The photo above appeared in the December 20, ’08 issue of the Argentine magazine “Noticias”.
--Scott Mathis
Labels: algodon wine estates, argentina, nacho figueras, polo
I personally love Google Maps; you can visit almost any neighborhood in the world. I know the Google satellite mapping of Argentina was only recently added to its website, so the map of Algodon Mansion’s location in Buenos Aries, for example, offers only a basic view, which you can see here. However, I assume that Buenos Aires will eventually have a more detailed mapping, such as we have in New York City. Here’s a Google Maps link to our office in Manhattan. Enjoy!
- Scott Mathis
Labels: algodon wine estates, argentina, real estate
Labels: algodon, algodon mansion, algodon wine estates, argentina, Mendoza, ruta del vino
Labels: algodon mansion, argentina, buenos aires
Labels: argentina
Labels: algodon mansion, argentina, buenos aires, real estate
Labels: algodon, algodon wine estates, argentina, José Luis Clerc, tennis
Labels: algodon wine estates, andes, argentina, golf, Sierra Pintadas
Bottom line, the Algodon brand represents a lifestyle. My goal and my company’s goal is to continue seeking out distinguished properties which encapsulate old-world charm and sophistication, and to refurbish them with modern day service, technology, and amenities.
I’ve been asked if I am looking to create a hotel chain. The answer is no. I prefer to think of this as simply a collection of exclusive properties within Argentina, which operate under the Algodon brand. And who knows? From there we may expand into other leading cultural cities of the world. But let’s not get ahead of ourselves…
Labels: algodon, argentina, brand, cotton club, lifestyle, rat pack
As I mentioned in a previous post, Argentina’s booming economy and real estate market are presenting unparalleled investment opportunities every day, and are attracting savvy international investors from all over the world, including us. When approaching the real estate market, we felt that an ideal investment sector for ourselves and our investors would be the hospitality sector. I personally feel that identifying underperforming commercial properties and repositioning them into hotel or mixed-use properties is a formula for success.
Argentina’s uninterrupted property appreciation has roughly seen a 50% increase in real estate values since overcoming its financial crisis in 2002. So it’s logical to me that, while property appreciation alone may be well worth the initial investment, capitalizing on that investment to create an additional primary source of income should be our ultimate goal. A successful luxury boutique hotel such as Algodon Mansion may potentially generate multiple revenue sources from a single piece of property. That’s good news to me.
While the Algodon Mansion will serve as a high-end, private hotel for distinguished guests, we also hope to appeal to the local community with the restaurant, lounge and spa. Our goal in the property’s renewal is to reclaim the old world charm and sophistication of its original 1912 architecture, while at the same time denoting an aesthetic value of modern elegance and functionality. We’re all proud of it. By respecting and maintaining the integrity of the building’s original facade, we believe the finished product will add to the beautification of the neighborhood; attracting a loyal customer base and becoming a travel destination for both the local community and visitors to Buenos Aires.
Next week I’ll talk about the name we’ve chosen for the hotel brand, and how we reached the decision to call our project “Algodon.”
Have a great week!
--Scott MathisLabels: algodon mansion, argentina, economy, real estate
“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!
--Scott MathisLabels: algodon mansion, argentina, buenos aires, gerhard heusch, Recoleta, tourism
When I arrived in Buenos Aires in 2003, it was common knowledge that the economy had recently suffered a debilitating blow, that the country had defaulted on its national debt and that the unemployment rate was soaring. Since I am by nature a contrarian, this was part of my motivation for going. Although my expectations were somewhat tamed by media coverage about the economic and social problems, I had hoped to enjoy the city’s charms and the value of its currency which had devalued by about 70% from its previous level. In fact, I was “wowed” to find a vibrant world-class city, full of sophisticated, well-dressed and happy people, historic beautiful neighborhoods with lush green parks and public monuments, wide-open boulevards lined with buildings boasting some of the finest architecture I had ever seen. I was also enthralled with the great shopping… markets…. music…. dancing…. wonderful food, wines and entertainment. I knew then why they call Buenos Aires the Paris of South America, at a third of the price here in the States and an even larger value discrepancy in comparison to the major European cities. My enchantment with the city prompted my interest to learn more about the local real estate market. The more I learned, the more convinced I became that there was a huge opportunity, that prices were extremely low compared to other leading cities and with the economy and tourism rebounding strongly, many elements of risk had already greatly subsided. I was determined to take action.
But that’s enough for today. Next time I’ll be talking about how my vision has indeed been realized by my companies (InvestProperty Group and DPEC Partners) in the creation of a luxury boutique hotel (“Algodon Mansion”) in Buenos Aires, and then later a very beautiful wine and golf resort (“Algodon Wine Estates”) in San Rafael- the southern heart of Mendoza.
Life is good!
-- Scott Mathis
Labels: algodon, algodon mansion, algodon wine estates, argentina, buenos aires, investing, Mendoza, real estate, San Rafael, scott mathis
Here we go- my first blog entry. I’ve been asked by several friends and coworkers; “What’s possessed you to write an online diary?” So first off let me say, a daily “diary” is certainly not my intention in creating this journal. I’m not here to talk about what I had for breakfast this morning (delicious as it was.) I’d like to think of this as a way to share my personal knowledge and experience regarding current and timely investment opportunities with my friends, family, clients and partners. This is also a great venue for me to keep those same people informed of my companies’ latest endeavors as well as the evolution of our projects.
As many of you know, I’ve taken a particular interest in Argentina’s real estate market, specifically Buenos Aires and Mendoza, after remarkable investment opportunities were made available due the country’s economic crisis several years ago. And though these opportunities have been much publicized, I’ve still been asked; “Why? Why Argentina?” I would like to say that my black box, which is fed with copious amounts of charts and data, issued a proclamation that the time was ripe to enter the real estate market there. However, things don’t normally work that way, at least not for me. My determination to enter this market really began as a personal journey, a tourist visit to Buenos Aires in fact, and was gradually transformed by my experiences and what I witnessed firsthand, into a determination to pursue a vision. So, while in the past few years there has been a lot of positive media coverage relative to Argentina’s real estate market, there is a big difference between words and action. Hence, I have used my conviction to take action and enter this market and am currently in the process of turning my vision into what I feel will be a profitable business and investment opportunity.
Next week I’ll tell you a little bit about my first visit to Buenos Aires, and what specifically it was that really clarified my vision and opened my eyes to the amazing opportunities Argentina offers its investors.
Until then…
-- Scott Mathis
Labels: algodon, argentina, buenos aires, investing, real estate, scott mathis