Brazilian luxury real estate developer JHSF Participacaoes has always been a key player in the luxury hotel operation and development game. Cutting its teeth on building some of the most luxurious hotel properties in the country, JHSF Participacaoes made a name for itself as a capable high-end hotel developer. It also gained a good deal of experience operating and owning luxury hotel chains, a skill set that would come in handy later.
After the firm’s founder, Fabio Auriemo, decided to retire in 2001, he handed the reins of the firm over to his precocious son, Jose Auriemo Neto. Under the leadership of Auriemo Neto, the firm thrived, building some of the most ambitious and stunning real estate development projects that Brazil had ever seen. By the year 2004, the company was increasingly being talked about as a prospect for an initial public offering. Taking one of the most successful and largest real estate developers in the country public was estimated to be worth billions of dollars. Even so, Auriemo Neto was not content to rest on his laurels. He continued taking on new and highly challenging development projects as well as acquiring various properties throughout the country.
In 2004, he acquired the entire Fasano hotel chain for $18 million. This legendary chain of 5-star luxury hotels has a long history in the country of Brazil and name brand recognition throughout Latin America that is second to none. It also gave JHSF Participacaoes a presence in the United States for the first time, with a major hotel being acquired in the Miami area, on South Beach. Like so many other of Auriemo Neto’s investments, the acquisition of the Fasano hotel chain proved to be an incredibly fortuitous deal.
Just three years later, in 2007, the company finally underwent its initial public offering. The market agreed with the judgements of José AuriemoNeto, valuing the company at more than $1 billion. What was the largest IPO in Brazilian history of a private real estate developer pointed to the fact that the market believed that the competitive edge JHSF Participacaoes had meticulously developed over the prior 30 years gave it an unmatched advantage in its markets.