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hospitality Market News: Spanish Real Estate Intelligence

KKH Sells the Future Hotel Edition in Madrid for €220M

12 December 2018 - Expansión

The Malaysian group YTL Corporation is going to formalise the acquisition of the building when it opens, in 2020. The fund is also selling the Hotel Edition in Barcelona to a group from the Middle East.

Hotels in Madrid and Barcelona are continuing to attract stratospheric investments, encouraged by the appetite of investors for Spanish property and the strong performance of tourism in the two cities. The latest to close a million-euro operation is the fund KKH Property Investors, headquartered in Barcelona, which has agreed to sell the five-star hotel that it is building in the former headquarters of Monte de Piedad, in the centre of Madrid. The buyer is the Malaysian group YTL Corporation, which is going to pay €220 million for the property when the hotel is inaugurated, at the end of 2020.

On the other hand, KKH has also sold another five-star hotel in Barcelona, for around €80 million to a group from the Middle East whose name has not been revealed. The two have operating agreements with the US chain Marriott, through its brand Edition.

KKH Property Investors is an alliance between KKH Capital, founded by the former CEO of Renta Corporación, Josep Maria Farré, and the funds Perella Weinberg Real Estate Fund I, Perella Weinberg Real Estate Fund II and PW Real Estate Fund III, advised by Aermont Capital LLP. The joint venture, created in 2014, has an investment budget of €500 million.

The fund’s strategy is based on the search for prime locations in Spain, the construction of five-star hotels, the agreement with major international chains and the sale of the asset once it has been inaugurated. Since its creation four years ago, the fund has planned numerous investment and divestment operations.

Luxury hotels

The two hotels that have been sold by KKH share the fact that they have been designed by the architect Carlos Ferrater, they are both five-star establishments and they will both be integrated into the Edition chain.

In the case of the hotel in Madrid, whose operation will be effective from the end of 2020 (…), it will have a surface area of 25,000 m2 spread over seven above-ground storeys and two basement floors (…).

The future Hotel Edition in Madrid, located just 200 metres from the Plaza del Sol, will have 200 rooms and suites, and like the other establishments in the brand, will place a great emphasis on design and on the restaurant offering. It is expected to have six restaurants and will result in the creation of 400 jobs (…).

In Barcelona

In the Catalan capital, KKH Property has followed a similar pattern. In that case, the divestment, agreed a while ago, has already been formalised, given that the hotel was inaugurated in September (…).

The hotel in Barcelona has 100 rooms and employs 230 people directly. Investment in the hotel exceeded €50 million.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

 
Meliá Finishes a €30M Renovation of its 900-Room Mega-Complex on the Costa del Sol

10 December 2018 - Diario Sur

Following the comprehensive renovation of the Don Pablo, Don Pedro and Don Marco Hotels, Meliá is preparing to change the brand to Sol Torremolinos Resort, with almost 900 rooms.

Just a few handcrafted details, commissioned in the 1970s, remind visitors of the origins and essence of the hotels Don Pablo, Don Pedro and Don Marco. They have undergone a comprehensive transformation following a €30 million investment to relaunch and consolidate them as the largest hotel complex in the Costa del Sol. The renovation work has taken three years and the only improvements left to make now, during the winter months, are in the spa located in the Don Marco Hotel, which is closed for the season, and in the indoor swimming pool, one of nine in the complex, explained Jaime Floyer, Director of Sol Don Hoteles. He added that Meliá is now preparing to change the brand to be renamed Sol Torremolinos Resort.

The three-hotel complex has modern façades, terraces that look like they end in the sea, a beach club and seven conference rooms, which have been renovated and equipped with the latest technology and with capacity for up to 500 people. It also has bedrooms and completely renovated common areas, plus 50,000 m2 of gardens and swimming pools, where the new work has improved the flow of clients from one hotel to another, to create the largest hotel complex on the Costa del Sol. “It is a resort that is looking to the future, we employ 210 people on average and we have a great diversity of nationalities amongst our loyal client base, with cases of tourists who spend up to five months here in the winter”, explained Jaime Floyer.

The new Sol Torremolinos Resort, on the beachfront, accounts for 5% of the hotel supply in Torremolinos, the town that is first in the ranking on the Costa del Sol by volume of hotel beds. This complex also has the advantage that it has an infrastructure that allows it to position each establishment in different and booming segments. In this way, Don Marco, the youngest of the hotels, inaugurated in 2004, as a four-star, 120-room property, is marketed as an establishment recommended for “adults only”.

By contrast, Sol Don Pedro is more focused on families (…); it opened to the public in 1971 and currently offers 344 rooms (…). Meanwhile, Don Pablo, with 442 rooms, is the big brother of the business (…) and opened its doors in 1974 (…).

In terms of the profile of clients, 25% are domestic, and the rest are from overseas, with Brits (24%) and Belgians (15%) standing out in particular (…).

Original story: Diario Sur (by Pilar Martínez)

Translation: Carmel Drake

 
Hoteles Bestprice to Invest €7.5M in Two New Establishments in Madrid

10 December 2018 - Expansión

The hotel chain Hoteles Bestprice is going to invest €7.5 million in its new establishments in Madrid and Girona, assigning €5 million to the hotel that it is going to build in the Spanish capital and €2.5 million to the establishment that it will open in Girona at the end of 2019, according to reports from Europa Press.

Original story: Expansión

Translation: Carmel Drake