Ola Uruguay Real Estate and Investments

A few weeks ago the national paper, El Pais, did a lengthy feature on the renovation of The Jockey Club in Montevideo. For decades the club played host to the city’s male aristocracy. Women could only enter the hall. From the 30’s to the 70’s society-men gathered to talk horses and horse races. The cigarettes they smoked and the whiskey they drank were all branded “Jockey Club.” It was lujoso (luxury), through and though. Since 1997, the building, located on 18 de Julio and Andes, has been closed. It sits as an emblematic testament of days past. Its return, however, is eminent. Starting in March the Portuguese real estate development group, Pestana, will begin remodeling the classic structure.

In 2012 the Jockey Club will reopen as the 5-star Pestana Montevideo Hotel. Pestana plans to spend $20 million on restoring the building to its original greatness, while updating it with modern amenities. The facade is mostly in tact and will be cleaned and illuminated. Restored marble columns, bronzed window frames, and art deco interiors will be paired with the latest in technology. Brazilian architect Jaime Morais is in charge of the restoration.

In addition to restoring the building, Pestana will also open a street-level restaurant that they hope will become the “in-place” to grab a drink or share a brunch. Montevideo is almost entirely lacking brunch options, so expats and locals alike will surely be pleased with the addition. The hotel will have 100 hotel rooms, a spa, a pool, a gym, and various conference rooms. Target clients are tourists and corporate visitors, making the Pestana a rival to local hotels like the Sherton and the Melia, both in the Punta Carretas neighborhood.

However, the difference is the character and rich historical value that comes with the Pestana. The remodel will surely spur similar new projects along 18 de Julio, one of Montevideo’s primary thoroughfares. The street is lined with a montage of architecture: art deco gems contrast with seventies-style modernist blocks and big chains like McDonald’s. According to the El Pais article, changing the aesthetic of 18 de Julio, beginning with Plaza Independencia and moving toward Ejido, is a priority for the city government. This implies not only remodels but also working together with business owners, street peddlers, and trash collectors to ensure safe and orderly sidewalks.

In similar news, Sofitel Luxury Hotels acquired the Casino Carrasco Hotel in Montevideo after signing a management contract with Carrasco Nobile S/A. The building sits at the shore of the Carrasco neighborhood but has long been abandoned. However, the building still turns heads. Or at least mine. Its grand re-opening is slated for 2011. The newly restored hotel will offer 116 rooms, a 450-seat conference centre, a lobby bar, indoor and outdoor swimming pools, a gym, and a casino. In addition, it will host a French restaurant, 1921, which is the date of the hotel’s original completion.

Both projects imply millions of dollars of investment. However, they do serve as a large-scale model for investment opportunities in Uruguayan real estate. A potential expat could think to do a similar, albeit smaller, remodel. For example, on a recent weekend visit to La Pedrera, Uruguay, my friends and I found a house for sale perched perfectly on a hill, overlooking the sea. We agreed it would make an incredible bed and breakfast. It was agreeable in size and cozier than neighboring options. The view could also not be beat.

With tourism on the rise, investing in real estate in Uruguay is a great option. Remodeling a property into a hotel or hostel could provide an expat with full-time, part-time, or project-based work.