As COVID Cases Decline in Argentina, Gaucho Group Builds Up Hotel and Estate Opportunities

·3 min read

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

With COVID-19 cases declining in Argentina, luxury goods and lifestyle company Gaucho Group Holdings Inc. (NASDAQ: VINO) is counting on a subsequent uptick in tourism numbers in the South American country to help boost its business.

While it continues to expand its vision 1,200 kilometers away at its luxury Algodon Wine Estates in San Rafael, Mendoza, the Miami-based company also owns an upscale hotel in the heart of Buenos Aires, the country’s capital.

The Algodon Mansion hotel is located in the renowned Recoleta district of the city, home to embassies and elegant shopping. The hotel’s suites range from 600 square feet to 1,300 square feet. You can even rent the whole hotel out for a special celebration.

While it has more of a boutique offering, Gaucho’s focus on its luxury hotel in Buenos Aires mirrors interest in the hotel space in the South American country. Marriott International Inc. (NASDAQ: MAR), for example, has announced plans for a Sheraton brand hotel in Patagonia by 2022 as well as a W Hotels Worldwide brand hotel in Buenos Aires by 2024. At Algodon Wine Estates in San Rafael, Mendoza (in addition to its existing boutique hotel there) Gaucho is currently seeking to partner with a branded luxury name to co-develop a boutique hotel and residences at the estate.

E-Commerce Holds Firm; Luxury Experiences Back on the Menu?

While its e-commerce division, which includes selling luxury leather goods, fine wines and luxury real estate, has enabled Gaucho to weather the storm of the pandemic, the company is now counting on the willingness of people to embrace luxury experiences — the Algodon Mansion included — as COVID numbers decline.

Now that numbers are on a downward trajectory — Argentina is currently at its lowest rate of new COVID cases since summer 2020 — Gaucho is inviting people to reconsider their travel plans. In September, the Argentinian government said it would be easing restrictions and opening its borders to all travelers later in the year.

Gaucho hopes luxury travelers may even consider staying at the Algodon Mansion and then take a trip to its wine estate in Mendoza. It is currently offering packages to combine staying at the 2 locations for a minimum of 6 nights.

The hotel, mindful of possible hesitancy over travel, offers a robust cancellation policy with full cancellation available up to 48 hours before any booking is due to start.

Mendoza Wine Experiences a Big Push for Gaucho

While Gaucho continues to market the Algodon Mansion in Buenos Aires, it has been laying the ground for future growth at the San Rafael-based Algodon Wine Estates complex where a number of real estate lots were marketed for sale earlier in the pandemic.

With increased tourism at least back on the horizon, such marketing efforts should be paying off with a future increase in visitors. The company is hoping to increase its sales of such lots in 2022 and beyond.

“Not only are buyers seeking a greater quality of life for their family and friends by purchasing land at Algodon Wine Estates, it is also a great opportunity for buyers to invest in deeply undervalued Argentine real estate and diversify their portfolios outside of the current USD market," says Scott Mathis, Gaucho CEO and chairman.

The Algodon Wine Estates complex also includes golf and tennis facilities plus the award-winning Chez Gaston restaurant. In July, the restaurant was recognized as a 2021 Travelers' Choice award winner, a status reserved for Tripadvisor Inc.'s (NASDAQ: TRIP) top 10% of restaurants worldwide.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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