CPP Investments, HSI Form Joint Venture for Hilton Hotels in Brazil

CPP Investments announced plans to invest approximately C$200 million for a 49.5% interest in two Hilton hotels in Brazil through a joint venture with HSI. The investment involves Hilton Copacabana in Rio de Janeiro and Hilton Morumbi in São Paulo.

Hilton Copacabana has 545 rooms and is located on the beachfront overlooking Copacabana Beach in Rio de Janeiro. Hilton Morumbi has 503 rooms and is located in one of São Paulo’s main business districts.

The hotels are undergoing a phased renovation program intended to enhance the guest experience, support revenue growth and create long-term value.

CPP Investments cited domestic and international demand and a limited supply of new hotel rooms as factors supporting its view of Brazil’s hospitality sector. The firm also said Brazil presents opportunities for long-term investors.

HSI manages approximately US$2.5 billion in assets across private real estate, listed real estate and credit strategies. Its activities in Brazil include sourcing, developing and actively managing real estate assets.