One of the biggest achievements of Hilton Hotels founder Conrad Hilton, besides establishing the world's first worldwide hotel network, has brought his hotel properties over numerous periods of serious economic difficulty. The Hilton has announced that it is developing its fifth hotel in Argentina based on its international presence and investing experience in tough socioeconomic conditions. directorys
The Hotel & Residences Hilton Pilar will be located in the Pilar Golf Complex in Pilar City, province of Buenos Aires. The proposed three-story hotel would provide 170 rooms, a conference room of more than 21,000 square feet and a number of facilities. The project will feature 130 residential units, including condominiums and single family houses, in addition to the hotel. The hotel is scheduled to open in March 2015.
The hotel sector in Argentina is facing problems as a result of monetary regulations that have made it difficult to get US dollars, and the buying power of the peso has eroded owing to rising inflation. Europeans whose discretionary incomes have fallen are a key source of revenue for the leisure business in Argentina. At home, while fast economic development allowed Argentina's consumers to cope with inflation, the country's growth rate could fall from almost 9% in 2011 to little more than 2% in 2012. One of the major consequences of the present economic slump is probably definitely holiday and luxury expenditure.
Due to growing economic and political uncertainty, a number of international firms plan to shut or decrease their operations in Argentina. Ralph Lauren, Ermenegildo Zegna, and Escada have lately shuttered or decreased their activities among the premium labels. Due to the prospect of continuing control of foreign currencies and declining economic conditions, few reasons may anticipate international firms to achieve a considerably better working environment in the near future.
On the other hand, the new Hilton project will benefit from the fact that a major part of the investment is invested on the sale of apartments. Many Argentines have sought to purchase real estate due to worries over financial assets known as Peso, a tendency that has persisted to raise prices even as currency regulations in a dollar-driven market have decreased trading volumes. Argentinas might view a chance to buy in a well-known international real estate brand as a smart short-term defensive strategy and a long-term investment decision in an environment in which safe harbors are declining to avoid depreciation in currencies.
More generally, the fact that Hilton increases Argentina's investment and national commitment at a time when the country's investment fundamentals deteriorate, a strategy which runs counter to the historical experience of many foreign investors, could be successful in improvements to Argentina's investment conditions.