Eike Batista Sells Hotel Glória for US$ 82 million

02/03/2014 - 08h49

Businessman Eike Batista sold the classic Hotel Glória in Rio de Janeiro to Swiss foundation Acron.

The value of the transaction was approximately US$ 82 million (R$ 200 million), according to information obtained by Folha. The purchase was finalized this Saturday (Feb. 1).

Acron is a Swiss fund that specializes in real estate investments, more specifically in hotels. In its 30 years of existence, it has already acquired 46 properties.

The purchase of Hotel Glória is the fund's first business deal in Brazil, although it already has a subsidiary in the country. When Folha tried to contact EBX Group and Acron, they did not comment.

Eike Batista sells Hotel Glória

It is not yet known who will run the hotel. The Swiss are now negotiating with several different hotel chains.

Batista is expected use the money from the sale to pay his debts. The businessman, who was once one of the richest men in the world, is facing a serious crisis and is selling every piece of his empire.

REX, the real estate branch of EBX Group, acquired Hotel Glória in 2008 for US$ 33 million (R$ 80 million). Batista bought the venture as another one of his "mega projects" to revitalize Rio de Janeiro.

The entrepreneur started a massive renovation and demolished the entire inside of the building, preserving only the façade. The Glória is one of the most well known hotels in Rio and has hosted presidents and celebrities.

The renovation was financed with US$ 78 million (R$ 190 million) from BNDES (National Bank of Economic and Social Development), of which US$ 20 million (R$ 50 million) were released. The initial goal was to finish the renovation before the World Cup, which will take place in July of this year.

When group X was overcome by crisis, the renovation was put on hold and the former location of the five-star hotel is now an abandoned construction site. The Glória runs the risk of not even being ready for the 2016 Olympics.

Translated by JILL LANGLOIS

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