Buenos Aires Builds Up Midprice, Luxury

<B> Buenos Aires Builds Up Midprice, Luxury</B>

By Robert Selwitz

In Buenos Aires' Puerto Madero district, there is prime evidence of what Jeff Karlson called "an explosion of hotels in this city." Karlson, regional director of marketing for the Southern Cone, Inter-Continental Hotels and Resorts and Crowne Plaza, sees particular growth among three- and four-star hotels, a category that until now has been woefully under-supplied. But not far from the 315-room luxury Inter-Continental, Hilton International is adding two upscale entries, with debuts set near the dawn of the millennium.

The Puerto Madero area within the past few years underwent a stunning conversion of the structures that once served as a Buenos Aires' seaport. Until recently they were unoccupied, with derelict warehouses and the almost complete absence of people. Today, Puerto Madero is the site of a sizzling nightlife, sublime restaurants and shopping is conveniently located only a short walk from the Buenos Aires financial district.

In Puerto Madero's midst, the new Hilton properties will include a 340-room luxury hotel, and a 200-unit extended stay Hilton Residence. The Residence, targeting long stays but imposing no room night minimums, will feature 108 one-bedroom units and 92 studio suites, all with onsite kitchens and easily accessible laundry facilities.

Though suffering a temporary occupancy slowdown due to Brazil's currency devaluation, Buenos Aires hotel expansion continues to rebound. Brazilians traditionally are major occupiers of Buenos Aires' hotels and their real buys much fewer Argentine pesos than before.

"There is a real mid-level gap waiting to be filled. Until now, four-star properties were typically family run, and frankly not up to the standards most international travelers find comfortable," Karlson said. The fall-off of Brazilian traffic really hurt many of these family run properties, he added, but also showed the international hotel chains what the profit potential could be in offering midprice rooms to business travelers on a budget.

"Now, many of these companies have decided to invest in hotels where rates are or will be US$100 to $200 nightly, instead of $300 or more in luxury hotels," Karlson said, noting a new Howard Johnson, a new Melia on Reconquista and several Holiday Inns. There also is a new 88-room Tulip Inn situated where Paraguay crosses Calle Florida, Buenos Aires' main shopping street.

Karlson also advised inbound travelers to choose hotels nearest their appointments. He suggested the Inter-Continental for those who need be within walking distance of the financial district and the recently expanded 450-room Crowne Plaza at the city's most bustling intersection--Avenido Neuvo Julio. A separate Holiday Inn also will be built nearby.

For those requiring access to foreign embassies or proximity to Recoletta, Buenos Aires' most upscale sector, recommendations include the 165-room Park Hyatt, the 173-room Caesar Park--one block away--or the city's grande dame, the 200-room Alvear Palace. Other top-drawer choices include the side-by-side 330-room Sheraton and 220-room Luxury Collection Park Tower. And at the foot of Calle Florida stands a 315-room Marriott.

Not to be left out in the heat, Sheraton has entered the expansion race with its recent takeover of a former Kempinski property at Cordoba Avenue and Maipu, renaming the 185-room property the Sheraton Libertador.

These moves are part of a nationwide expansion effort that includes the erection of a new property in Cordoba, Argentina's second largest city; a new resort in Mar de Platta; and the assumption of management and a $7 million renovation of the Sheraton Iguazu, over- looking the world's largest waterfall.

According to Cecilia Diaz, account director of Sheraton's Luxury Collection, "next year Sheraton is opening a hotel in the Pilar area, a major suburb on the city's outskirts. We definitely want to meet the needs of the increasing number of companies locating away from the city center."

Eduardo Cruz del Rio, general manager of the Caesar Park, agreed that Argentina has lacked moderate-price properties, and added that "for years, there really were not much more than a thousand luxury hotel rooms in the city, which created a real problem for international travelers," particularly during Argentina's busiest months of April, May, October and November.

Many travelers doing business in Argentina during those prime months might have chosen to spend less money, but found they had no choice but to book luxury brands. "Today, that situation is changing," del Rio said. "Having a greater range of properties should benefit Buenos Aires in many ways."

For business travelers whose budgets do have room for top-notch accommodations, del Rio said Caesar Park now "is offering one of our luxury rooms, transportation to and from the airport, free continental breakfast, a 15 percent discount on international phone calls, and having two pieces of laundry cleaned for US$295 per night." A unique amenity, which may be popular with international business travelers, is the existence of female-only floors in the Argentinean Caesar Park property.