On April 14th, 2016, the Competition Tribunal issued a favorable opinion on the request presented by the National Prosecutor´s Office about the acquisition of the Sheraton Santiago Hotel and Convention Center, and the San Cristobal Tower by Hotel Investment Holding SpA. (The “Acquisition”).
The Tribunal analyzed the characteristics of the hotel industry in the context of the Acquisition, especially the distinction between the ownership and the administration of the hotels. The Tribunal concluded that the management of the hotels in the transaction does not depend directly on the owner and that there is no indication that this will change due to the Acquisition. Accordingly, the Tribunal resolved that the risks associated to the Acquisition are, at first, not relevant.
Notwithstanding, the Tribunal analyzed the effects on the market for hotel administration as if it were integrated with the property, in order to rule out risks in the event that the owner interferes in it. The Tribunal established that the acquisition affects a market with low concentration and low barriers to entry, confirming its preliminary finding. Therefore, it authorizes the Acquisition without conditions.