13 February 2017 – Expansión
Hispania, the Socimi in which George Soros owns a stake, has purchased a hotel in Málaga from the NH Hotel Group for €41 million. The establishment, which NH will continue to operate under a lease contract, currently contains 133 rooms, although an extension is planned to add another 112 rooms, which is expected to be completed by June 2019.
The operation will be structured in two phases. On the one hand, Hispania will purchase the asset and sign a long-term lease contract with NH. On the other hand, the Socimi will bear the cost of the investment to improve and expand the hotel. The contract signed with NH provides for the payment of a fixed sum during the first two years, which will be complemented by a variable component, calculated on the basis of income, once the extension has been completed.
Hotel NH Málaga, which has been owned by NH since 1999, has 133 rooms (overlooking the street), nine meeting rooms for events, as well as a restaurant, two terraces and a gym.
Sources at NH have explained that the agreement forms part of its asset rotation strategy and allows it to still benefit from the property’s potential through its operation.
This operation forms part of Hispania’s plan to focus on hotel assets, whilst at the same time divesting from residential assets and rotating its offices. Specifically, in addition to this asset, the company is set to soon close operations amounting to around €200 million and has others worth more than €1,400 million in the pipeline.
Original story: Expansión (by R. Arroyo)
Translation: Carmel Drake