BlackRock Enters Hostel Sector Through the Creation of a JV with Amistat
7 June 2019 – Hosteltur
BlackRock Real Assets has acquired an initial portfolio of three hostels and six establishments in the pipeline from the Barcelona-based hostel chain Amistat Hostels through the creation of a joint venture worth €100 million.
Specifically, Amistat currently operates two establishments in Spain: the Amistat Beach Hostel in Barcelona and the Amistat Island Hostel in Ibiza, and is also building another hostel in Barcelona. In addition, it has signed agreements to open another six hostels in Rome, Porto, Lisbon, Dublin and London.
According to Thomas Mueller, European Head of Value-Added Real Estate at BlackRock, this transaction represents a great business opportunity as although the hostel market has attracted a growing number of institutional investors in recent years, it is still an undervalued sector, due to its fragmented nature and “very low brand penetration”.
Original story: Hosteltur
Translation/Summary: Carmel Drake