After the announced construction of the Hotel Complex of Saint Regis, in Buenos Aires (Argentina), the Raghsa Group, an investor in the project, recently announced that it has decided not to invest in this type of high-end proposal, due to the lack of a high-net-worth public.
According to Héctor Salvo, general manager of the company, to the newspaper La Nación de Argentina, "we understand that today we do not find the optimal conditions to carry out the development of a hotel and residential complex of these characteristics, so we decided to analyze the different alternatives for a new constructive proposal."
The complex was to be built in the Puerto Madero sector and would demadaría an investment of US $ 1,000 million. The property consists of 4,650 square meters and there previously operated the Opera Bay.
"Raghsa puts the money where he knows that the business is successful, if not, he does not put it," said the executive of the firm and added that the obstacles that Argentina is currently putting for the issue of imports, also influenced when making the decision to suspend the project, "because those materials can not be obtained in the country."
Héctor Salvo confirmed that instead of the high-end hotel , another building will be built there, since the decision is not to stop investing but to do it in another type of proposal.
"The public of high purchasing power is not coming to the country at the moment, so the Saint Regis would be a hotel that would not be in accordance with this moment," said the manager in the aforementioned newspaper.
