INVESTMENT
WE DON ’ T WANT TO TAKE MAJORITY STAKES . BUT WE WOULD PARTNER WITH EXISTING OWNERS , REAL ESTATE FUNDS , PRIVATE EQUITY INVESTORS TO ALIGN AND MAXIMIZE PROFITS FOR THEM AND FOR US .
- MAURICIO SALGAR in hotels and acquisitions of other third-party hotel operators .
Advent International , which at the beginning of the year had US $ 88 billion in assets under management and holds a majority stake in U . S . third-party giant Aimbridge Hospitality , sees great prospects in Colombia and the region . In fact , Advent Managing Director in Bogotá Mauricio Salgar says he can see GHL doubling or tripling its size within five years .
“ This is a sector we like , and we have been tracking opportunities in the region for quite some time ,” Salgar says . “ We were fortunate enough to come across the founders of GHL some years ago and we have had a relationship for four years now . Last year , we reconnected and today this partnership with Jorge Londoño , co-Founder and CEO of GHL , signals the potential we see in the sector and across Latin America .”
The potential exists because most hotels in the region are still independently owned . The GHL model and sales pitch dictates that it can act as a go-between with owners and brand . “ Of course , this implies operational excellence and above average financial results ,” Salgar adds .
Growth will come predominantly via strict third-party agreements with the new capital infusion allowing for occasional sliver equity investment . “ We don ’ t want to take majority stakes ,” Salgar adds . “ But we would partner with existing owners , real estate funds , private equity investors to align and maximize profits for them and for us .”
The new team will focus mostly on acquiring contracts with medium or large hotels with more than 100 keys with an emphasis on cities that have a strong mix of leisure and business activity .
Because scale matters , too , in Latin America , Salgar adds that the new venture will also consider acquiring other regional management companies . “ Within each country , there are other very interesting players . So , yes , acquisition is certainly an option .”
Of course , with growth comes the required scale to manage , which also presents one of the biggest challenges of the new venture : finding the right team members . “ We understand very well that talent development and retention is critical in this process ,” says Londoño . “ We are already starting to do some internal moves to manage the growth . And , of course , this new partnership with Advent gives us all their knowledge , as well .”
At the end of the day , Salgar
66 hotelsmag . com July / August 2022