• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Blas Herrero Breaks Into Hotel Market of Madrid

28/01/2014 – Expansion

Herrero acquired the Foxa 32 Suites hotel for 16.75 millon Euros. The establishment has been in hands of BBVA after having been transferred to the bank from liquidated Trome Group. The company owning seven Foxa hotels, situated mainly in Madrid, filed voluntarily for a creditors´arrangement in January 2012.

Last year the company was announced bankrupt and after all closed in June. BBVA received the Foxa 32 hotel, being the third main company´s creditor. Now, HVD Casas managed by Blas Herrero became its new owner.

(…) “The acquisition will hopefully be an incentive for a new business line in the sector of hotel apartments in Madrid, and later expand to other city centers” – says the businessman.

In order to create the aparthotel chain, the owner of Kiss FM will rely merely on his own capital: “We want to grow without any external funding”.

The bought property covers 15.120 square meters, including apartments, trade premises and parking spaces distributed among several floors. The businessman will jointly invest 30 million Euros in the property that will undergo a complex renovation to become a reference model in next 10 years, Herrero points out, while seeking specialists to manage the establishment.

Foxa 25 

During the same auction process, another property from the Trome chain has been acquired – the Foxa 25 hotel, located adjacently to the property bought by Blas Herrero.

In this case, the purchaser was the real estate Pryconsa. The company founded in 1963 commercializes as well first residence dwellings as hotels and aparthotels. The auction price closed at 27 million Euros, out of which about 10.5 millions have been paid by Pryconsa.

Both transactions confirm a good period for hotel industry in Spain that closed the fiscal year 2013 with a great investment volume (…) of  791 millon Euros, according to the consultant company Irea.

The number almost doubles the score from the previous year (49.6% more). Majority of the transactions (72%) was conducted in the second half of the year (…).

Source: ExpansiónPro