CPP Investments and HSI Form C$200 Million Joint Venture to Acquire Two Hilton Hotels in Brazil

CPP Investments (CPP Investments) announced Aug. 10 that it will invest approximately C$200 million for a 49.5% interest in a joint venture with HSI, a Brazilian real estate and private credit investment manager, to acquire two Hilton-branded hotels in Brazil.

The joint venture covers the Hilton Copacabana, a 545-room beachfront hotel overlooking Copacabana Beach in Rio de Janeiro, and the Hilton Morumbi, a 503-room upper-upscale hotel situated in one of São Paulo's main business districts. Together, the properties total 1,048 rooms.

Deal Structure and Asset Details

CPP Investments' C$200 million commitment secures a 49.5% stake in the joint venture, with HSI serving as the local operating partner. Both hotels are currently undergoing a phased renovation program designed to enhance the guest experience, support revenue growth, and create long-term value.

The Hilton Copacabana sits on the beachfront in Rio de Janeiro's Copacabana neighborhood, while the Hilton Morumbi is positioned in one of São Paulo's primary business corridors. The pairing gives the joint venture exposure to both leisure-driven demand in Rio and corporate travel demand in São Paulo.

"The investment in Hilton Copacabana and Hilton Morumbi provides CPP Investments with exposure to high-quality hospitality assets in a sector where we see strong long-term fundamentals supported by resilient domestic demand, growing international demand and a limited supply of new hotel rooms," said Ricardo Szlejf, Managing Director and Head of Real Assets, Latin America, CPP Investments. "Brazil continues to present compelling opportunities for disciplined, long-term investors. Our partnership with HSI secures access to one of the country's leading real estate investment managers with deep local expertise and proven execution to help generate attractive long-term returns for the CPP Fund."

HSI's Role and Platform

HSI manages approximately US$2.5 billion in assets across private real estate, listed real estate, and credit strategies. The firm has an established track record of sourcing, developing, and managing institutional-quality real estate assets across Brazil.

"We are proud to welcome CPP Investments as a partner of HSI. This partnership is strategic for our firm and reflects the strength of our platform and track record across Brazilian real estate," said Max Lima, Founding Partner and CEO of HSI. "We look forward to working together through this hospitality joint venture, as we continue to see solid fundamentals across Brazilian real estate, with strong demand and limited future supply supporting attractive risk-adjusted returns."

Strategic Context for CPP Investments

CPP Investments manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries. The Fund totaled $793.3 billion as of March 31, 2026. The organization invests globally across public equities, private equities, real estate, infrastructure, and fixed income, and maintains a regional office in São Paulo among its global locations.

The joint venture structure pairs CPP Investments' large balance sheet with a local operating partner that brings on-the-ground sourcing and execution capabilities. CPP Investments cited limited new hotel supply in Brazil as a key factor underpinning the investment thesis, with both parties noting that strong domestic and growing international demand, combined with constrained future supply, support the risk-adjusted return profile of the assets.

Market Conditions and Outlook

The transaction is structured as a value-add recapitalization rather than a passive core acquisition, given that both properties are mid-renovation and the joint venture is underwriting future revenue improvement rather than relying solely on current cash flow. The phased renovation program at both hotels is central to the long-term value creation strategy outlined by the partners.

Hotels are a supply-constrained operating sector in many markets, as new room delivery faces higher barriers than other commercial real estate product types. In Brazil specifically, both CPP Investments and HSI pointed to limited future supply as a structural tailwind for existing branded assets.

Sources

CPP Investments Newsroom — CPP Investments and HSI Form Joint Venture to Acquire Landmark Hilton Hotels in Brazil