That isn’t quite how it works! The developer is going to build in the Puerto Madero neighborhood because that’s where the developer had the property that could be developed. The developer most likely didn’t have options in the Palermo area, probably because it would be much more difficult and/or expensive to get the property in the first place or permission to build such a high rise tower there.

The developer and Marriott agreed on the W brand for the hotel in this new building. It isn’t like Marriott chose the location; the developer has this location. Marriott and the W brand are simply taking advantage of a new building development that offers an appropriate opportunity for the W hotel. And it also precludes another chain putting in one of their brands.