Luxury Brand Focuses On Real Estate Boom

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The real estate market is booming in many parts of the globe as the world emerges from the COVID-19 pandemic. 

One luxury goods manufacturer and provider of luxury experiences is hoping that will continue to be the case in its core market of Argentina.

Miami-based Gaucho Group Holdings Inc. VINO reported significantly increased revenue for the year ended Dec. 31. Revenue was up mainly because of increased housing lot sales at its luxury wine estate in Mendoza, Argentina.

The company, which also has an e-commerce division selling fine wines and luxury leather goods, reported revenue of $4.9 million for 2021 compared with $636,000 the year before. The rise was almost entirely the result of increased sales of the housing lots at the company’s Algodon Wine Estates in San Rafael, Mendoza.

“We are delighted to end 2021 on a strong note, particularly with respect to growing investor interest in our luxury Algodon Wine Estates in Mendoza, Argentina,” CEO Scott Mathis said on the release of results April 14. “We are anticipating being able to recognize revenue for additional lot sales in 2022, and as the world continues to rebound from the pandemic, we are optimistic that we may continue to see meaningful growth there.”

Developing A Master Plan

The focus on the Algodon resort and its housing lots comes with the revision of the entire estate’s master plan. 

New plans for the development include an additional 200 housing lots on top of the existing 350 lots. Mathis and Gaucho hope to realize upwards of $100 million in revenue from sales of the new lots.

The centerpiece of the estate master plan review is a new 80-room luxury hotel that will include up to 60 residences from which the company aims to generate an additional $25 million in revenue annually. 

Gaucho is looking to partner with a luxury hospitality brand on the development. Sheraton Hotels and Resorts, owned by Marriott International Inc. MAR and the Park Hyatt group, operated by Hyatt Hotels Corp. H, are among the big names that run hotels in the Mendoza region.

Gaucho is looking for additional revenue opportunities from its Las Vegas lodging, hospitality, retail and gaming project as well as from a planned new flagship retail store in Miami. The company also operates the luxury Algodon Mansion hotel in the heart of Buenos Aires.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.