10 August 2018
The hotel investment market is still at a fever pitch, driven by healthy tourism receipts in Spain. Taking advantage of the moment and the current lack of supply, the Colony Capital fund has decided to sell one of the largest hotels in Valencia, elEconomista confirmed with several sources in the sector.
The Meliá Palacio de Congresos Hotel, formerly managed by Hilton, is on the market for approximately 50 million euros, in an operation that is being advised by Savills Aguirre Newman.
The property, located at 52 Avenida Cortes Valencianas, has more than 300 rooms, a gym, restaurants and parking. Also, the four-star hotel has 24,000 square meters in area, consisting of two buildings with a 29-floor tower, a 21-room Convention Centre and can accommodate up to 875 people. The sale has aroused the interest of many investors, including family offices, socimis and institutional investors, including Axa Real Estate.
According to the same sources, the hotel’s management will remain with Meliá, which has been operating the asset since 2010 through a ten-year, renewable contract.
Growth in Spain
Colony took the asset over earlier this year as part of a much larger operation in which it took control of asset manager Continental Property Investments (CPI), previously owned by the Lebanese investor Boutros El-Khouri.
CPI, which owns properties in the United Kingdom and France, landed in Spain at the height of the crisis, taking advantage of the opportunity to acquire several hotels. The company invested a total of around 250 million euros in two years. In addition to the Meliá Valencia, it also acquired the Husa Princesa and Husa Moncloa, in Madrid, and Florida and Miramar, in Barcelona. These last two were acquired in a partnership with Joan Gaspart, the owner of Husa.
Original Story: eleconomista.es – Alba Brualla
Translation: Richard Turner