Three Brazilian regional hotels have merged to form a new Hotel chain, Allia Hotels. The merged entity is the biggest 100 per cent national hotel chain in Brazil. The three hotels groups are Bristol Hotels, based in Minas Gerais; Plaza Inn Hotels, based in Sao Paulo and Solare Hotel Group, from Maranhao.  The new group boasts of 40 existing hotels in operation and more than 3,000 rooms and approximately 1,600 employees.

In number of properties, it will be the third largest hotel group in the country, with presence in six states and focused on the economic segment, besides superior hotels and resorts. Performing total revenues of 121 million reals in 2009, it will reach approximately 150 million reals in 2010.

The new hotel group has already outlined plans for growth, to go hand in hand with the thriving Brazilian economy. The firm said it is working on attaining sustainable growth, to enable it propel into the future whilst meeting demand as well as thriving business. With the existence of the three regional brands, Allia Hotels plans to make use of the increasing demand for hotels as well as the positive prospects generated by the 2014 World Cup and the Olympics in 2016.

Under the terms of the agreement, the three independent firms in the merger will retain their brands but will undertake operations under the Allia Hotel Group. The companies will launch the Allia brand for superior and luxury hotels as well. The merger is expected to be effective in two years’ time. Within two years the alliance between the three companies shall became a complete merge. The company will be headed by Andre Monegaglia along with a board of directors and management committees assuring the best practices of corporate governance.

Targeting the powerful growth of demand, Allia Hotels – an abbreviation of Alliance, and meaning fortune in Latin – already set their expansion plan. Confirmed investments of R$ 450 million by 2014, contracts have already raised from investors and developers. The funds will be invested in 30 new buildings and is expected to capture additional new features to the market.

In 2014, the Allia Hotels has plans to have 70 properties. In the same period, direct the staff more than duplicate, to 3,400 employees. The three networks will operate initially through partnerships in reservation, Sales, IT and Marketing, with standardization of operations, tools and corporate policies, with economies of scale and synergy.