Transaction / Assets Seller Buyer € MM
Hispania Buys Hotel Paradise Portinatx In Ibiza For €11M
19 July 2016 – Expansión
The Socimi Hispania Activos Inmobiliarios has acquired 100% of the shares in the company Later Deruser, owner of the Hotel Paradise Portinatx in Ibiza (Balearic Islands), for €11 million, which will now be operated by Barceló.
Hispania has performed the operation through its subsidiary Bay Hotels & Leisure, according to a statement filed with Spain’s National Securities and Markets Commission (CNMV).
Hotel Paradise Portinatx is a three-star facility, with 134 rooms.
As part of its investment strategy, Hispania will undertake a comprehensive refurbishment of the property, spending approximately €8 million, to increase it to an “adult only” 4-star hotel.
The Barceló Group will operate the hotel through a lease contract (with fixed and variable elements) under a framework agreement that covers all of the hotels operated by the group.
The asset is located on Playa de Portinatx, right on the beach. The town of Portinatx, in the north of the island, is seeing a significant upgrade of its hotel offerings.
According to available data about occupancy rates and average revenues per room, Ibiza has established itself as one of the primary destinations in the Mediterranean.
Hispania considers that there are still attractive investment opportunities in the hotel sector, as it gains presence in vacation destinations with growth potential, as well as in privileged locations.
According to the CEO of Hispania, Concha Osácar, this operation shows, once again, that the Balearic Islands – and Ibiza in particular, which is the best performing island in the region – are a key market for Hispania.
Currently, Hispania owns four hotels on the island: the recently repositioned Hotel Barceló Pueblo Ibiza, and three hotels recently purchased in Cala de San Miguel, which will be repositioned in 2017.
Original story: Expansión
Translation: Carmel Drake