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June 26, 2012

Host Hotels & Resorts to develop hotels in Brazil and US

Real estate investment trust Host Hotels & Resorts has announced plans to develop two hotels in Rio de Janeiro, Brazil, for $72m and to co-develop one hotel in Nashville, Tennessee, US, for $46m.

By Srivani Venna

Real estate investment trust Host Hotels & Resorts has announced plans to develop two hotels in Rio de Janeiro, Brazil, for $72m and to co-develop one hotel in Nashville, Tennessee, US, for $46m.

For the two properties in Rio, the US-based company has signed an agreement with Galwan Engineering and Performance Realty and company has already acquired the land to construct a 150-room Novotel hotel and a 255-room Ibis hotel.

The company has also signed a 50/50 joint venture agreement with White Lodging Services (WLS) for the construction of a 255-room Hyatt Place in downtown Nashville.

Construction of the two hotels in Brazil, which will be overlooked by Galwan, is slated to start in July 2012 with their openings expected in 2014.

“Our first investment in Brazil, the JW Marriott in Rio, has significantly exceeded our projections and has been a great investment for the company and we are pleased to build upon this success."

The two hotels will be managed by Accor and will be located in Barra da Tijuca, which will play host to the majority of all activities for the Olympic Games in the summer of 2016.

Host Hotels & Resorts president and CEO Edward Walter said Brazil had a strong economy, large growth potential and a limited number of existing hotel rooms.

"Our first investment in Brazil, the JW Marriott in Rio, has significantly exceeded our projections and has been a great investment for the company and we are pleased to build upon this success," Walter added.

Construction of the Hyatt Place Nashville/Downtown, the first Hyatt in the area, has already started and it is expected to open in December 2013.

Under a franchise agreement, WLS will act as the hotel operator with Hyatt for the Hyatt Place brand.

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