The Millionaire Who Holds the Hotel Miguel Ángel

Nadhmi Auchi pulls strings from his office in London without haste. Otherwise, he would have already found a replacement for Occidental, the network that controls his only asset in Spain, Miguel Ángel Hotel in Madrid. (…).

The owner of one of the best situated hotels in the Spanish capital, on Paseo de la Castellana Street, has got two options: either assign the property management to a third party or directly take care of it, releasing in Spain a branch of his luxury hotel chain Le Royal, (…) present in Luxembourg, Marocco, Tunisia, Lebanon and Jordan.

According to Forbes, Auchi is the 670th the richest man in the world and his fortune is the 22nd in the United Kingdom. First, he will have to reposition the hotel, investing about 30 million Euros.

(…) “From the financial point of view, the most logical option is to hold the distribution and the 267 rooms, and give way to an international brand. However, this hotel, thanks to its location, could be an upmarket product with prices ranging from 350 up to 375 Euros and less rooms, reaching the level of Hotel Villa Magna or Four Seasons” defends Miguel Vázquez, the director of Hoteles of Irea consulting company.

(…) The input investment, key money, can oscilate between 2 and 5 millions.

(…) It might turn out to be dificult to sell a room for  750.000  to a million Euros, which would value the hotel at 200 to 267 millions, because investors are less prone to pay amounts similar to ones before the crisis.

Source: Expansión