Source: Benzinga
By: Michael O'Connor
07.22.2021
Luxury goods and real estate company Gaucho Group Holdings Inc. VINO 5.1% recently announced a significant step forward for its goal of creating a unique world-class vineyard resort destination. Gaucho entered into an engagement with planning, landscape architecture and urban design firm EDSA, Inc. with the intent to “enhance and further develop the existing masterplan of Algodon Wine Estates Private Estancias 4,138-acre luxury vineyard and golf development in San Rafael, Mendoza, Argentina.”
By bringing on EDSA, a top-tier landscape design firm, Gaucho shows significant commitment to its large-scale strategy for the continued development and operation of its Algodon Wine Estates location.
Marco Larrea, PLA EDSA Principal stated, “We are very excited to begin work on this expansive project. I believe our team, in conjunction with those in place at Algodon Wine Estates and Gaucho Holdings, will work effectively to design and complete the enhancement of these inviting and unique assets.”
Adding Another Big Name?
Importantly, Gaucho also stated that “this initiative includes laying the foundation for a partnership with a branded luxury name in hospitality to co-develop a boutique hotel and associated residences.”
This action likely means that not only will the hiring of EDSA as a landscape/estate design for the proposed vineyard resort be laying crucial groundwork, but it may bring added value by helping to attract an international luxury hospitality chain to co-develop.
Scott Mathis, CEO & Chairman of Gaucho, commented, "We could not be more excited to work with EDSA. We are hiring the best, and we are getting the best, with the goal to potentially bring in a world-class branded 80 to 120 room hotel with branded residences including our own ‘Algodon’ branded residences.”
If all the residences surrounding are branded as well with both Algodon and a large luxury hospitality name, owners could be in a unique situation to benefit as well. This union could mean increased property value for individual owners by having an added layer of brand value and recognition for the estate houses.
Names like Four Seasons NYSEFS, Hilton Worldwide Holdings Inc. HLT 2.02%, and Hyatt Hotels Corporation H 1.07% are names that could add a substantial amount of brand equity.
Stay, Relax and Sip
Gaucho already has experience with developing and operating luxury accommodations with its Algodon Mansion in Buenos Aires, but the completion of the Algodon Wine Estates project would be a new paradigm for Gaucho. Tying in their winemaking, luxury goods, hospitality and real estate initiatives into one cohesive experience could make for a unique offering.
Ultimately, by adding a partnership with EDSA and looking for one with a global hospitality brand, Gaucho’s master plan looks to be getting closer to completion.
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