Hispania Buys Hotel Fergus Tobago In Mallorca For €20M

27 June 2017 – Expansión

Hispania, at the half-way point of its life, is remaining firm in its commitment to the hotel segment, whilst continuing to divest its office and residential businesses.

As part of this strategy, the company in which George Soros holds a stake, has purchased Hotel Fergus Tobago, located on the island of Mallorca, for €20.2 million, which it has financed entirely using its own funds.

The company plans to invest an additional €10 million on the refurbishment of the hotel, which has 275 rooms and a 3-star ranking. With the repositioning work, the company hopes to increase the category of the establishment and improve its services. The Socimi plans to carry out this renovation once the 2018 season has come to an end.

Hotel Fergus Tobago recorded an average occupancy rate of 88% last year, according to data released by the Socimi.

Following the acquisition, Fergus Hotels will continue as the operator of the hotel, through a lease contract with fixed and variable components.

This purchase comes after the operation that the group undertook a few weeks ago when it acquired a hotel in Benidorm for €15.6 million. It plans to spend between €17 million and €19 million on the complete refurbishment of that asset.

Hispania now owns 11,296 rooms in 39 hotels and has consolidated its position as the largest hotel owner in Spain, ahead of the chain Melia.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

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