Equity International (EI) on Thursday announced a new investment in Bogotá-based Terranum Hotels, concurrent with the acquisition of Decameron Hotels & Resorts.
Terranum Group and EI’s acquisition of Decameron accelerates expansion plans for Terranum’s hotels unit by adding 27 owned, leased and managed hotels in seven countries. The portfolio includes hotels in Colombia (13), Mexico (3), Jamaica (2), Peru (3), El Salvador (1), Ecuador (2) and Panama (3), totaling 7,561 keys. Lucio García will continue to serve as Decameron’s president.
Through this transaction, which allows Terranum Hotels to complement its existing portfolio of city hotels, Chicago-based EI closes its second investment with the Terranum Group. Its first was the 2011 investment in Terranum Corporate Properties.
Decameron Hotels & Resorts, headquartered in Cartagena, Colombia, was founded in 1987 by Argentine Lucio García. Additionally, Decameron manages a proprietary supply channel through its in-house tour operator and branded vacation club.
Terranum Hotels has an existing portfolio of internationally branded hotels, primarily in Colombia, Costa Rica and El Salvador. Its partners include Starwood Hotels & Resorts and Marriott. In 2014, Terranum Hotels will open the first W hotel in Bogotá.
“This operation allows us to merge into a single company, Decameron’s all-inclusive recognized business model’s track record with the strength of Terranum Hotels,” said José Ignacio Robledo, president of Terranum Group. “In addition, with this announcement, two teams with a unique and specialized experience in the industry integrate.”
“This transaction marks EI’s second investment in Colombia, a market we continue to be enthusiastic about,” said Tom Heneghan, CEO of Equity International. “We are delighted to join forces once again with such distinguished partners as the Terranum Group and the Santo Domingo Group as we propel the institutionalization of the Colombian real estate sector.”