6/06/2014 – Expansion
Madrid´s hotels became the target of massive refurbishment. The vivid interest shown by foreign investors to invest in Spanish assets and the willingness of international brands to gain ground in the country made the City Council clerks take out from drawers the old projects of new hotel openings burried years ago with “unreal” label.
One of the most outstanding investment plan is the renovation of the Triángulo de Canalejas by Juan Miguel Villar Mir, owner of OHL, assuming converting the property into a complex compound of a Four Seasons hotel, luxury dwellings and a shopping center.
Arrival of the Canadian giant pushed other big-name hotel chains, like Hilton, Hyatt, Marriott and Kempinski, to improve their location in the capital. Also it encouraged investors to rotate assets and explore the market in search of potential buyers.
No one wants to lag behind when the Four Seasons opens its doors in 2016. Hotel projects, concerning especially 5-star establishments, came back to game also thanks to interest of such affluent investors as Bill Gates (founder of Microsoft) or Saudi prince Alwaleed Bin Talal.
The latest large refurbishment project dates back to 2007 when Portugese family Queiroz Pereira, possessing the Four Seasons Hotel Ritz in Lisboa, closed the Villa Magna in Madrid for 14 months to let the fresh air in. Sodim, one of the Queiroz Pereiras´firms, invested €150 million in the renovation and purchase of the property from Japanese family Shirayama.
Also, the InterContinental in Madrid is at the verge of changing hands sold for €70 million to Sovereign Qatar Fund.
As per the Hotel Asset Management Report by Magma Hospitality Consulting, 5-star hotels starred in only 23.6% of all sales conducted in Spain during 2013.
Original article: Expansión (by Y. Blanco)
Translation: AURA REE