WITH BIG EMPHASIS ON ADDRESSING SOCIAL CAUSES , $ 650 MILLION FUND LOOKS TO ACQUIRE 20 HOTELS IN THREE YEARS .
by JEFF WEINSTEIN , EDITOR IN CHIEF
INVESTMENT
CGI fund has an
ESG PLATFORM WITH TEETH
CGI Merchant Group ( CGI ), a global investment management firm focusing on real estate and private equity , has created Conscious Certified Hotels ( CCH ) to create positive social impact in its destinations . All CCH properties will be housed within Hilton ’ s collection of brands like Tapestry , LRX and Curio Collection . Flagship properties will be unveiled during this last quarter of 2021 , with more to come throughout 2022 , according to Raoul Thomas , CEO and founder of Miami-based CGI since 2006 .
In fact , in August , CGI Hospitality Opportunity Fund I purchased for US $ 109 million the former Celino South Beach in Miami Beach , and in mid-October reopened the property as the 132-key Gabriel-branded property under Hilton ’ s Curio Collection soft brand managed by Highgate . The deal closed weeks after the reopening of The Gabriel Miami , another Curio Collection affiliation in downtown Miami .
In March , CGI also announced a US $ 30 million investment in Atlanta , Georgia ’ s Morris Brown College to convert existing facilities into a 150- key upscale hotel and hospitality management training complex .
Launched in late 2020 , the US $ 650 million fund looks to purchase 20 hotels across gateway cities in North America and the Caribbean over the next three years . Alex Rodriguez , the former New York Yankees MVP turned businessman and Miami resident , is participating in the fund that also includes participation from Adi Chugh , founder of the New York-based Maverick Commercial Properties .
Acquired hotels will be in prime locations in gateway cities around North America and the Caribbean , according to Thomas . Built on ESG principles , CCH is committed to addressing the hyperlocal needs of its destinations , with a heavy emphasis on social causes .
In mid-October , CGI was rumored to be the acquirer of the Trump International Hotel Washington , D . C . It was not clear if this reported acquisition would be paid for by the new fund .
CCH has created a proprietary social impact tracker aligned with key United Nations Sustainable Development goals about education , employment and prosperity , allowing the team to identify
42 hotelsmag . com November / December 2021