Minor Hotels has signed two agreements in Madrid with real estate developer Grupo Petra to strengthen its presence in Paraguay.

The deal comprises a strategic partnership to source new property projects alongside a management contract for a 116-room hotel in Asunción, set to operate under the four-star NH Hotels & Resorts brand.

The new NH hotel on Calle Quesada will sit within the capital’s financial district, near Shopping Mariscal and major banking institutions. Construction is set to begin in early 2027, targeting an opening by late 2029. Facilities will include 244 square metres of event space, a rooftop bar and restaurant, a gym and an outdoor swimming pool.

The project marks the second collaboration between the two firms in Asunción, following the Petra Imperiale project. That development includes an NH Collection property slated to open in early 2030.

The broader framework agreement enables Grupo Petra to identify and structure future developments across Paraguay, which Minor Hotels will assess for potential management contracts. The expansion will target the NH, NH Collection and Tivoli brands. Both firms plan to target regional commercial hubs such as Ciudad del Este and Encarnación alongside the capital.

Gonzalo Aguilar, CEO of Minor Hotels Europe & Americas, commented: “We are delighted to continue developing new agreements with Grupo Petra in Paraguay, a market where we see highly compelling opportunities for selective, long-term growth. This collaboration allows us to explore new projects alongside a local partner with deep market knowledge and strong development capabilities, while leveraging the strength of our brands, our international operational expertise, and a global commercial platform. Our objective is to move forward with discipline, identifying opportunities that can deliver value for owners, guests and destinations.”

Carlos Guasti, president of Grupo Petra, noted: “This alliance with Minor Hotels represents a significant step in our vision to contribute to the evolution of the Paraguayan real estate and hospitality market through international-scale projects. At Grupo Petra, we work to bring global brands and operators to the country that offer expertise, top-tier standards, and new development opportunities. Paraguay is experiencing a period of real estate, corporate, and tourism growth, and we believe this collaboration will support that momentum with proposals capable of driving value for the sector, destinations, and the country’s positioning as an attractive market for investment.”

The expansion fits into Minor Hotels’ asset-light growth model, focusing on management and franchise deals in emerging regional markets.