GV Resorts’ billion-dollar funding to share shade and recent water within the Northeast

GV Resorts’ billion-dollar funding to share shade and recent water within the Northeast

If eight years ago someone had told businessman Manuel Pereira from Goiás that his bet on multi-property hotels would surpass his businesses already consolidated in traditional civil construction, he would have doubted it.

Founded in 2014, GAV Resorts was an “adventure” in a sector that, despite being widely spread in the United States and Europe, was only regulated in Brazil in 2018. “We started working with timeshares very timidly. It was a secondary business that became our main arm in a very short time”, says Pereira to the NeoFeed.

In addition to having already invested more than R$ 800 million in the eight multi-property hotels already launched, the brand expects to invest R$ 3.5 billion in new ventures by 2025. The investment is from the company’s own cash, without the need for loans, partners or third-party companies. “The secret of timeshares is to make construction costs viable while still in the plant”, says Pereira.

By the end of the year, GAV Resorts will plant its flag in three destinations: Pipa (RN), Jericoacoara (CE) and Maragogi (AL). With the Northeastern project, the group will be present in the North, South and Northeast regions. There will be 11 resorts launched and BRL 2.1 billion in cash revenue in the 2022 balance sheet.

In Maragogi, the new GAV resort will feature futuristic architecture signed by designer Bruna Kehrnvald. The project will be built on a steep terrain of 27,000 m², with two blocks in the form of organic tape, several sources of lighting and natural ventilation. In total, the complex will have 364 apartments and several common areas.

In the most coveted destination in Rio Grande do Norte, the resort of Pipa will have 246 units, including 228 apartments for up to four people and 16 two-bedroom apartments, in addition to two duplex apartments. The land where the project will be built has 21 thousand m², and the resort’s concept will be to integrate nature with architecture and decoration, using materials such as bamboo, straw, wood and stone.

The GAV de Jericoacoara will be located on the shores of Lagoa do Paraíso and next to the Jericoacoara National Park, one of the most sought after in the destination. The resort will be the largest of the three new launches: it will have 56,000 m² and will consist of 288 apartments and 12 exclusive bungalows, totaling 300 units. The address will also have all the leisure areas present in the other resorts, with emphasis on a 4,600 m² swimming pool.

Manuel Pereira, founder and CEO of GAV

According to the brand’s CEO, the sale of hotel real estate fractions is not very different from the sale of an apartment on the plant. “We launch the project, sell the units at the plant, build and deliver”, says Pereira. The company’s revenue is justified by the number of launches. “About 70% of all our launches were made in the last 40 months. We are reaping the rewards now”, says the businessman.

The first GAV operation to get off the ground was a multi-property resort with 320 apartments in Salinópolis, a beach in Pará. Currently with eight resorts in its portfolio, ranging from 150 to 990 rooms, GAV is present in coveted leisure destinations such as Porto de Galinhas (PE) and Gramado (RS). In 2021, the brand earned BRL 1.1 billion with its timeshare model.

Hotel brands that work with timeshares usually divide their units into 26 or 52 quotas, in reference to the number of weeks that the year has. If a room is divided into 26 shares, for example, each shareholder can use the property for 2 weeks a year, but it is possible for the same person to buy more than one share.

At GAV resorts, the average value of the real estate fraction is around R$ 50 thousand, which entitles you to two weeks of accommodation every 12 months. The brand’s target audience is the middle class.

“Hotel multi-property is made to awaken desires. Nobody leaves home thinking about buying a resort room”, admits Pereira. This year, GAV has already launched 92,000 multi-property quotas for 3,210 rooms at its resorts. The goal is to reach the end of the year with 55 thousand clients with a signed deed.

The ambition of the Goiás group – created with the union of three partners from the construction companies Gratão, Amec and Vallepar – is anchored in the optimistic numbers of the Brazilian timeshare market. Since it was regulated in 2018, the segment has become a trend in the national hospitality industry and has grown, on average, 24% a year in the last four years, according to consultancy Caio Calfat.

According to the consultancy, the number of real estate units available in the Brazilian market in 2022 grew 31% compared to 2021, reaching 767,465 quotas launched. The General Sales Value jumped 45% compared to last year, making timeshares a potential market of R$ 41 billion.

Bets on the sector are not restricted to national hotel brands. The American chain Hard Rock will make its debut in Brazil, the first country in South America to receive the brand, with seven multi-property developments. Investment of around R$ 7 billion.

The Hard Rock resorts will be in Fortaleza (CE), Ilha do Sol (PR), Jericoacoara (CE), Campos do Jordão (SP), São Paulo (SP), Foz do Iguaçu (PR), Recife (PE) and Natal (RN). Of these addresses, the only hotel that will not be timeshares is in São Paulo. The units in Fortaleza and Ilha do Sol will be the first to be delivered, still next year.

The developer behind Hard Rock’s arrival in Brazil is VCI, which has already won over 12,000 customers and surpassed the R$ 1.3 billion mark in quota sales with the project.

In the case of Hard Rock, the units are also divided into 26 fractions that entitle you to two weeks of accommodation per year, but unlike GAV, the product is aimed at class A, with quotas that start from R$96,900 and can reach to R$ 239,900, depending on the type of accommodation.

“Our client is on average 37 years old, is married and has a monthly income of at least R$25,000,” says Samuel Sicchierolli, CEO of VCI. “We want to make the client question the logic of having a holiday home that is used only a few days a year.”

Source: Neofeed

Related post

Solfácil invests BRL 100 million in a Distribution Middle within the Northeast

Solfácil invests BRL 100 million in a Distribution Middle…

The company Solfácil, specialized in solar solutions that connects solar energy integrators to people interested in generating clean, renewable and accessible…
Minerva advances within the carbon credit score market with funding in climate-tech

Minerva advances within the carbon credit score market with…

Minerva announced a US$2 million minority investment in Bluebell, a climate-tech startup that develops tokenized environmental assets to connect rural producers…
Selfit stops focusing on Sensible Match (for now) and focuses on the Northeast

Selfit stops focusing on Sensible Match (for now) and…

Over the past five years, Selfit has tried to put into practice an expansion plan for its gym network that was…

Leave a Reply

Your email address will not be published. Required fields are marked *