hospitality Market News: Spanish Real Estate Intelligence

CBRE GIP & Pygmalion Join Forces to Acquire 9 Hotels

13 November 2018 - Iberian Property

CBRE GIP and Pygmalion Capital Advisers LLP have recently established a new joint venture for the acquisition and repositioning of hotel assets in Europe, including Spain.

The partnership was launched through a formal tender, the acquisition of NPL’s debt and a portfolio of 9 four-star hotels in Spain, formerly belonging to construction group Urvasco.

The portfolio includes 1,650 rooms in hotels in Sevilla, Madrid, Bilbao, San Sebastian, Santander, Tenerife, Valladolid and Ciudad Real. Hoteles Silken will operate the assets through a long-term deal established with the joint venture, as part of a full repositioning program.

Alexander van Riel, in charge of CBRE GIP for Western Europe, said in a release: "We have entered the Spanish hotel market for the first time with the acquisition of a much sought-after portfolio. This transaction is in line with our global strategy to create strategic joint ventures with experts in the sector".

And he added that "We will generate value through selective actions of added value and at the same time we will benefit from the stable and safe flow of stays. In time, we will make additional investments in hotels with indexed rentals", he concluded.

Christophe Beauvilain, founding partner at Pygmalion Capital Advisers LLP, added that «This alliance underlines our vision for the market of buying, at desirable prices, a pan-European portfolio of businesses and hotels, taking advantage of the special circumstances provided by the growing market of bad loans (NPL)  which exists in Europe. The combination of European banks which remain highly exposed to bad loans and the countless debt funds that have been actively buying NPL portfolios, provides a large source of opportunities for investment and for our specialised strategy. Silken’s hotel portfolio provides us with a solid basis to carry out a fast expansion in the Spanish market given our growing flow of investment opportunities", said the release.

Cuatrecasas law firm, directed by Fernando Bernad Ripoll, provided legal assistance. Christie & Co and JLL carried out the commercial and technical due diligence respectively.

Original story: Iberian Property (by Ana Tavares)

Edited by: Carmel Drake

B&B to Open the First Hotel in Valdebebas

29 October 2018 - Expansión

The hotel chain B&B Hotels – owned by the fund PAI Partners – is arriving in Valdebebas with the objective of opening the first hotel in that urban development to the northeast of Madrid in 2021.

To this end, the French chain has signed an agreement with Filasa, the owner of the land on which the establishment will be built, for the rental of the plot in Valdebebas for a minimum period of 10 years.

Two buildings are going to be constructed on the plot, which has a buildable surface area of 8,000 m2. The first, which will span a surface area of 4,400 m2 and be shaped in a stepped-structure, will house the 150-room hotel. The second, which will span 3,200 m2 and take the form of a cube, will be used for offices. This property will also have a premise measuring 400 m2.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

The Sale of Hotel Sol in Puerto de Naos Generates €600k for La Palma's Municipal Coffers

27 October 2018 - El Día

The sale of Hotel Sol located in the tourist town of Puerto de Naos, in Los Llanos de Aridane (La Palma, Canary Islands) generated almost €600,000 (specifically, €597,215) for the municipal coffers by way of profit, according to reports presented in the most recent plenary session.

The sale was undertaken as part of a larger operation. Specifically, the hotel chain Meliá Hotels International sold three hotels in Sevilla, La Palma and Fuerteventura for €73.4 million to the real estate company Atom Hoteles Socimi, although it continues to operate them under a rental arrangement.

The one-off income obtained by the Town Hall was one of the arguments presented by the spokesman for Izquierda Unida, Felipe Ramon, to oppose the elimination of the tax, which each year generates around €100,000 for the municipal coffers. The case of Hotel Sol was exceptional, although it is also true that “if this tax had not been in force, the Town Hall would not have collected a single euro for the operation”, as the leader of IUC indicated.

The left-wing party rejects not only the suppression of the tax on property gains but also considers the decrease in the rate of IBI, approved in the plenary session, to be premature.

IUC considers that lowering the IBI “without first conducting a study and together with the other fiscal ordinances” proposing its modification “now when it was not scheduled for 2018”, represents “the start of the election campaign for the PP” (…).

Original story: El Día

Translation: Carmel Drake