This historic building in Montevideo, a 23-room hotel ripe for renovation, is currently listed for US$790,000.

We’ve watched the roll-out of several new Buenos Aires boutique hotels over the past five years, but there’s something architecturally unique about this second wave of upscale accommodations, according to La Nacion’s Loreley Gaffoglio.

While the first wave featured many new construction mid-rises, the new kids on the block like DPEC Partners’ Algodon Mansion are often historic buildings being restored to a level of glamour and glory they haven’t seen since the early 1900′s. “Contributing factors in this second round are the origin of capital and the scale of the projects: national investors joining together with foreign investors and private equity groups, creating fideicomisos and attracting foreign bon vivants, enthusiasts of short but frequent luxury vacations,” writes Gaffoglio.

The risk/reward ratio is justifiable for these investor groups especially when they choose a historic building, she adds, because the French architecture of Barrio Norte and Recoleta mixed with high-tech gadgetry and personalized service is a winning formula. That combination of original design, personalized service and tech amenities like iPads and netbooks for guests, are what sets these properties apart, says Agustina Trucco of theBBH, adding that today’s investor groups are often seasoned travelers and not traditional hoteliers. (Full Story in Spanish)

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