Tag: 5* hotel

CBRE: Hotel Inv’t Will Exceed €3,000M In 2017

10 October 2017 – Observatorio Inmobiliario

The summer holidays led to a slow down in hotel investment in Spain during the third quarter of 2017, after 6 months of euphoria and record-breaking deals, when more than €1,400 million was invested. By contrast, investment volumes reached just €240 million during the months of July, August and September, which represents a 55% decrease compared to the same period in 2016.

Nevertheless, the most significant operations of the quarter took place during the month of September, which, together with the major sale and purchase operations that are in the pipeline, suggests that hotel investment in Spain will accelerate again during the last few months of the year, according to CBRE Hotels. The consultancy predicts that the volume of investment may reach €3,000 million in 2017, which would represent a historical record, exceeding even the figure registered in 2015.

According to data collected by CBRE Hotels, between July and September, investors spent €240 million on the purchase of hotel assets, including not only hotels per se but also tourist apartments, aparthotels and plots of land and buildings dedicated to hotel use. In total, 22 assets were transacted (involving 2,500 rooms), with holiday hotels accounting for the lion’s share (65%) of the total amount invested (and representing 80% of the rooms sold).

In terms of the destination of investments, in the urban sphere, deals were very evenly distributed between Spain’s main cities: Madrid, Barcelona, Málaga, Granada, Valencia and Bilbao. Nevertheless, in the holiday segment, investors spent 45% of their total investment in the two archipelagos (i.e. in the Canary and Balearic Islands).

In terms of the most significant operations, within the holiday perimeter, the acquisitions undertaken by Portobello Capital stand out – it was the most active investor during the third quarter of the year, starring in the purchase of several assets/stakes in hotels managed by Blue Sea Hotels & Resorts. In the urban segment, the most high-profile purchase involved Hotel Parque Central de Valencia by Senator Hotels & Resorts.

In the end, and just like during the first two quarters of the year, CBRE Hotels also brokered two operations during the third quarter. Firstly, it intermediated the sale of Hotel Dolce Sitges (5* and 263 rooms), which also became the most significant transaction of the quarter (in both the hotel and urban segments). On the other hand, the company executed the sale of a plot of land in Bilbao destined for the construction of the first hotel in the city of the Catalonia Hotels & Resorts chain. For Jorge Ruiz, Director of CBRE Hotels in Spain, “the unprecedented performance of the hotel sector during the first half of the year, both in terms of investment and operations, added to the volume transacted during the third quarter and the projects underway, suggest that investment in the sector could reach €3,000 million this year, whereby exceeding the record set in 2015”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Gilinski Acquires Hotel Villa Magna For €190M

30 June 2015 – Expansión

The Colombian investor has acquired the exclusive Madrilenian hotel for €190 million and is now negotiating the contract for the management of the property with the international hotel chains Marriott and Starwood.

The Colombian businessman Jaime Gilinski (pictured above) has agreed the acquisition of the Hotel Villa Magna in Madrid for €190 million. The proeprty is currently owned by Sodim, a holding company controlled by the Portuguese Queiroz Pereira family. The deal is expected to be signed within the next few days (…).

The transaction represents the largest hotel purchase in recent times in Madrid. Last month, the Ritz Hotel was sold to the Saudí group Olayan, in a joint venture with the Mandarin Group for €130 million; and in May 2014, Katara Hospitality purchased the Intercontinental Hotel for €70 million. The consideration also comes close to the €200 million paid by Qatari Diar in 2013 for the W Hotel in Barcelona.

The Queiroz Pereira group purchased Hotel Villa Magna in 2001 from the Japanese company Shirayama for €80 million, and spent a further €50 million on the refurbishment of the property.

The deal, coordinated by the real estate consultancy JLL, has been closed in record time since the process for marketing the property officially began less than a month ago and reflects the interest that exists for real estate assets in Spain. Gilinski’s offer exceeds the property’s asking price (€180 million) by €10 million.

Once the deal has been signed, Gilinski will focus on reaching an agreement for the management of the property. After ruling out other options, he is currently negotiating with two candidates, namely, Marriott and Starwood.

The hotel is currently operated by the Queiroz family following the departure of the US hotel chain Hyatt in 2009, which managed the property for almost two decades.

The Hotel Villa Magna has 150 luxury rooms, including suites (measuring between 30m2 to 290m2), following the refurbishment work undertaken by the former owners, between 2007 and 2009.

Commitment to Spain

The new owner of Villa Magna arrived in Spain in 2013 after acquiring 5% of Banco Sabadell. Since then, he has not only increased his stake in the bank to become the largest shareholder in the Spanish entity, he has also evaluated opportunities in other sectors, such as real estate.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Hispania Acquires 2 Hotels In Canary Islands For €105M

19 June 2015 – Hispania Press Release

Hispania Activos Inmobiliarios, S.A., through its 100% subsidiary company Hispania Real SOCIMI, S.A.U., has acquired the Gran Hotel Atlantis Bahía Real (pictured above) and the Suite Hotel Atlantis Fuerteventura Resort, both located in the Canary Islands. The Gran Hotel Atlantis Bahía Real is a 5* GL hotel and is the landmark hotel in Fuerteventura. It falls into the category of trophy assets within Hispania’s portfolio, along with the Hotel Guadalmina Golf in Marbella.

These two acquisitions provide new flow to Hispania’s investment in vacation hotels, which is being developed along with Grupo Barceló, and it strengthens its presence in the Canary Islands, a key market in the company’s resort hotel strategy.

The €105 million price implies a 10.5x multiple of GOP during the last twelve months to March 2015. Based on the results as of March 2015, the Gross Yield of this investment stands at 8.5%, whilst the Net Yield is 8.0%. The amount paid for both hotels has been fully disbursed using Hispania’s own funds.

Grupo Atlantis will continue as the operator of both hotels, which are very well maintained, under a rental contract with a variable component that includes a minimum guaranteed fixed rent. The agreements reached with Grupo Atlantis include diverse incentive schemes linked to the results obtained by the operator as a result of the management of the hotels.

Gran Hotel Atlantis Bahía Real

The Gran Hotel Atlantis Bahía Real is a 5* GL hotel with 242 room –inaugurated in 2003. It provides direct access to the beach and is located just a few minutes away from the Natural Park of Las Dunas de Corralejo, which was recently named one of the best beaches in Spain. This is the landmark hotel in Fuerteventura and one of the most prominent ones within the 5* GL category in the Canary Islands as a whole.

Suite Hotel Atlantis Fuerteventura Resort

The Suite Hotel Atlantis Fuerteventura Resort is a 4* hotel with 383 room, also located in the North of Fuerteventura Island, in Corralejo. It has 3 restaurants, 7 bars, a spa, 7 outdoor swimming pools, 3 tennis courts and garden areas, all of which is distributed across a surface area of approximately 50,400 square metres.

Original story: Hispania Press Release

Edited by: Carmel Drake