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Hotel Miguel Ángel’s Socimi Will Debut On The MAB In 2017

5 October 2016 – Expansión

This iconic asset will form part of the Socimi created as a result of the alliance between the hotel group BlueBay and Le Royal Hotels & Resorts, which is due to debut on the Alternative Investment Market (MAB) during the first quarter of 2017.

In addition to Hotel Miguel Ángel, the Socimi will initially comprise other hotels located in Mallorca and a commercial development project on the Costa del Sol. In the absence of the opinion of an independent expert, first estimates indicate that the Socimi will be worth around €500 million.

The company has already engaged Armabex to prepare the informative document for joining the market. That firm will act as the global coordinator, alongside PwC, throughout the process.

The contribution of the hotel, which is owned by the Iraqi born British investor Nadhmi Auchi, who owns Le Royal Hotels & Resorts, has been carried out through a company restructuring process performed, primarily, using local companies and entities in Luxembourg.

New assets

“Although during the first phase, assets such as Hotel Miguel Ángel by BlueBay, some hotels in Mallorca and a commercial development on the Costa del Sol, including a hotel, will be included, the group will subsequently incorporate more properties, as a result of the asset restructuring process in commercial, fiscal and corporate terms, as well as due to the purchase of new assets”, explained the Chairman of BlueBay Hotels, Jamal Satli Iglesias in an interview. “The Socimi will be managed from Dubai, where I live, which will enable us to service different investors from the Middle East and London, for the other international investors”, said the Syrian-born Spanish businessman.

For the executive, the constitution of this Socimi forms part of a corporate strategy through which, in line with the actions of other international hotel chains, he wants to separate out the asset ownership and the operational sides of the business. “With this, we are looking for growth and consolidation”.

Amongst the benefits of this Socimi, Satli Iglesias highlights its significant diversification, both in terms of properties as well as lease contracts, which allows it to expect “very attractive returns, which will continue to increase over the next few years, driven by growth in the real estate sector and by the forecast growth in the tourism sector”.

Satli Iglesias said that this operation seeks to obtain “transparency and returns”. “During this first phase, we are more open to the entry of institutional investors and other hotel chains or hotel property owners who may want to join our project”.

BlueBay – the fifteenth largest hotel company in Spain – currently has 42 hotels in its portfolio, of which it owns 50%. “We are committed to a hotel management regime, backed by property ownership, and our future strategy is to increase the number of hotels that we manage under this structure”, he explained.

“Our strategic plan for 2017-2020, which we have just presented, involves increasing our current hotel supply by almost 50% to exceed 60 hotels by the end of the period. In terms of the number of beds, we expect the figure to double from its current level (23,000 beds) to more than 50,000 beds by 2020”, said the executive.

Satli Iglesias explained that in order to undertake these expansion plans, the group plans to allocate around 80% of the company’s profits to growth.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake