Apple Leisure Group Debuts in Spain with its Purchase of a Majority Stake in Alua Hotels

23 January 2019 – Revista 80 Días

The US group is one of the largest managers of accommodation in the Caribbean. This purchase allows it to enter the vacation segment and the European market.

Apple Leisure Group (ALG), one of the largest hotel investors in the USA, has acquired a majority stake in the share capital of Alua Hotels and Resorts, the hotel group founded in 2015 by its main executives and the private equity fund Alchemy Partners. The amount of the purchase has not been revealed, although the joint operating result of the chain’s main hotels amounted to €6 million in 2017. Given that the properties are located in areas with high tourist demand and good forecasts, the amount of the operation could have exceeded €40 million, based on the multiples that are typically used for this type of transaction.

With this acquisition, ALG is entering the European market through the sun and beach holiday segment. And it is doing so in a country such as Spain, which receives more than 80 million tourists per year in search of that kind of offer. Alua Hotels has 11 hotels located in Mallorca, Ibiza, Fuerteventura and Tenerife, together with an apartment building in Ibiza.

In total, ALG will manage more than 3,000 4-star hotel rooms, focused on the type of tourist who wants a superior service to that usually found in the average accommodation establishments in beach areas. The US company is planning to undertake more acquisitions in the European market and has announced that it wants to become a reference player in the main destinations in the Mediterranean (…).

Apple Leisure Group is one of the most important investment conglomerates in tourism in the USA. It used to be owned by the investment fund Bain Capital (…), which sold it in 2017 to the funds KSL Capital Partners and KKR for an undisclosed sum. (…). According to data from the conglomerate, it manages 14 brands and handles more than 3.2 million passengers per year (…). Its turnover exceeds USD 3 billion per year (…).

Original story: Revista 80 Días 

Translation: Carmel Drake

Hispania Buys 2 Plots In Canary Islands For €13M

31 July 2017 – Idealista

Hispania is pushing ahead with its strategic plan and, to this end, has completed the purchase of two plots of land on which it will build 2 luxury resorts. The plots of land acquired by the Socimi for €13 million are located in the Canary Islands, specifically, in Lanzarote and Fuerteventura.

In addition to hotel resorts, the objective of the investment vehicle, in which the magnate George Soros holds a stake, is to incorporate retail, leisure and sports facilities into the complexes. The project looks set to involve a total investment of around €50 million in the case of Lanzarote alone.

Hispania already owns the Occidental Playa and Barceló Lanzarote hotels, and based on the plans that it has in mind, the five-star complex would contain more than 1,000 rooms, which would make it the largest establishment in Hispania’s portfolio. In Fuerteventura, the Socimi also owns several properties, including two hotels that it purchased in the summer of 2015 for just over €100 million.

Over the last week, Hispania has been in the news for several reasons. Firstly, it is negotiating the sale of 24 office buildings for around €500 million; the insurer Swiss Life is the final candidate in that process.

In addition, the Socimi saw the stock market debut of the investment vehicle that it shares with Grupo Barceló (known as Bay Hotels & Leisure), which started trading on 20 July with a market value of almost €500 million.

Original story: Idealista

Translation: Carmel Drake

Martinsa Puts New Batch Of Assets Up For Sale For €57M

4 January 2017 – Expansión

Martinsa Fadesa’s bankruptcy administrators have put a batch of land, homes and work in progress developments up for sale for a combined price of €56.7 million.

The assets put on the market as part of the liquidation of the real estate company are located in: Murcia, Valencia, Fuerteventura, Madrid, Toledo, Huelva, Las Palmas and Málaga, according to official data.

The largest asset, which has been put up for sale for €32 million, corresponds to the Atalaya Dorada plot of land, located in the municipality of La Oliva, just a few kilometres away from the Dunas de Corralejo Natural Park, in the north of the island of Fuerteventura.

The plot may house homes, a golf course, and buildings for hotel and tertiary use.

The current administrators of the company have also put up for a sale another plot of land in the Canary Islands, located in Las Palmas de Gran Canaria, for €21.4 million.

The property is located in Barrio de Guanarteme, around 100m from Playa de Las Canteras and next to its future extension.

Meanwhile, the company has put a property near the Guadalhorce reservoir in Antequera (Málaga) up for sale for €2.2 million.

The property, which may be used for recreational and agricultural activity, has a surface area of approximately 334 hectares and borders the Guadalhorce Reservoir and the Torcal de Antequera.

In addition, the bankruptcy administrators of the former real estate company have put two homes in Molina De Segura (Murcia)up for sale, as well as two homes under construction in La Pobla De Vallbona (Valencia), six bungalow type townhouses in the municipality of La Oliva (Fuerteventura), and a 168m2 home and parking space in Madrid.

A terraced home in Illescas (Toledo) has also been put on the market, along with a terraced house in Ayamonte (Huelva) and three plots of land in La Pobla De Vallbona (Valencia).

Interested investors are invited to submit their offers by 20 January.

On 11 March 2011, an agreement was approved for Martinsa to pay €7,200 million of debt over a 10-year period without any discounts. Nevertheless, the company’s breaches and lack of liquidity forced it to file for liquidation in 2015.

Martinsa Fadesa’s bankruptcy administration team comprises Antonia Magdaleno, Ángel Martín Torres, as representative of KPMG Auditores –appointed by the CNMV-, and Antonio Moreno Rodríguez, as representative of the creditor Bankinter.

The liquidation of Martinsa Fadesa may be completed in 2017 and once the creditors have been returned the “present value” of the assets that they financed, according to sources close to the process.

Original story: Expansión

Translation: Carmel Drake

Schauinsland-Reisen Buys Two Hotels In Fuerteventura

28 November 2016 – Real Estate Press

The German tour operator Schauinsland-Reisen has acquired Hotel R2 Río Calma and the Maryvent apartment complex, both located in Fuerteventura.

According to a statement issued by the Company, the Canary Islands represent one of the main destinations for the tour operator. For this reason, Schauinsland-Reisen has invested in two very well-known and well-regarded tourist complexes in the Canary Islands. The two buildings are located on the Costa Calma de Fuerteventura and are very popular with the German market, according to the company. The group has acquired 100% of the superior 4-star Hotel R2 Río Calma, which has 416 rooms, and has become the majority shareholder of the Maryvent apartment complex, which is also a 4-star property.

Gerald Kassner, CEO at the company, appeared very happy with the success of the agreements and the incorporation of these hotels into the firm’s portfolio. “We are very happy to be acquiring these two beach-front hotels for the German market and for our clients. Both tourist complexes fit perfectly with the Schauinsland-Reisen portfolio in terms of quality and location”, he said.

The group highlights that the Maryvent apartment complex has a “prime location” right on the beach front at Playa de Costa Calma. Guests stay right next to the 1km-long, shallow beach. (…).

Within the R2 hotel chain complex, the tour operator Duisburgo also exclusively operates the 5-star R2 Romantic Fantasia Suites Design de Bahía Playa, the 4-star R2 Design Hotel Bhía Playa and the 4-star R2 Romantic Fantasia Dream.

In June, the German tour operator bought its first hotel in Mallorca, the Bahía Cala Ratjada, a 4-star property, formerly known as Eva Park.

Original story: Real Estate Press

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