Tag: Hilton

Blackstone’s Spanish Hotel Portfolio is Worth €3.5bn

3 June 2019 – La Vanguardia

In recent years, the US fund Blackstone has invested €3.5 billion in the Spanish hotel sector through its specialist manager HI Partners, making it the largest hotel owner in Spain and the third largest in Europe after the Swedish firm Pandox and the French group Covivio.

HI Partners was created four years ago and owned 17 establishments by the time Blackstone acquired it in 2017 for €640 million. A year later, the US fund launched a successful takeover bid for the Socimi Hispania, which gave it control of another 45 hotels.

According to Alejandro Hernández-Puértolas, Partner and CEO of HI Partners, the firm now owns 62 establishments in Spain, with around 18,000 rooms. By region, 53% of its rooms are located in the Canary Islands, where it has 25 establishments, 26% are in the Balearic Islands (18 hotels) and the remaining 21% are located across the Peninsula above all in the Costa del Sol, Valencia and Cataluña.

HI Partners is headquartered in Barcelona and has offices in the Canary and Balearic Islands. It employs 100 professionals and its hotels are managed by 19 different operators including Marriott, Barceló, Hilton, Melià and Ritz Carlton.

Original story: La Vanguardia (by Rosa Salvador)

Translation/Summary: Carmel Drake

Bankinter’s Socimi Atom Buys Hotel Meliá Valencia for €42.3M

23 May 2019 – Levante EMV

Bankinter’s Socimi Atom has purchased the Hotel Meliá Valencia on Avenida Cortes Valencianas from the company Colony Capital for €42.3 million, according to sources close to the operation.

Colony Capital acquired the 117-metre tall property last year when it purchased the fund Continental Property Investments (CPI). In turn, Continental Property bought the building, which was operated under the Hilton brand originally, in January 2011.

Original story: Levante EMV (by Ramón Ferrando)

Translation/Summary: Carmel Drake

Axa Buys Remaining 45% Of Hotel Diagonal Mar For €70M

17 November 2017 – Eje Prime

Axa Real Estate is not one to rest on its laurels and so has acquired 100% of Hotel Diagonal Mar in Barcelona. The real estate arm of the French insurance company has committed to paying Iberdrola Inmobiliaria €70 million for the remaining 45% of the establishment to become the sole owner of the property, after it paid €80 million in June of this year for the other 55%.

With just over a month to go before the end of the year, this agreement represents the most important in the hotel sector in Barcelona, and one of the most significant in Spain. According to El Economista, this second payment will have been pre-determined by the two parties in the summer, when Axa’s first investment in the asset materialised.

Hotel Diagonal Mar is a property intended for holiday and convention (business) tourism, in the area of the same name, alongside the shopping centre of the same name, which Deutsche Bank purchased last year for €495 million. The four-star establishment is just 400m from the beach, has 413 rooms and 20 suites, as well as a large banquet room with capacity for one thousand guests and fifteen meeting rooms. The hotel was constructed by Iberdrola, after that firm reached an agreement with the chain Hilton, which has operated the establishment since then.

With this purchase, Axa is strengthening its interest in the hotel real estate business in Spain. In Madrid, it acquired Cine Rex on Gran Vía through the same real estate arm with which it has purchased the hotel in Barcelona. In that operation, the insurance company disbursed around €40 million to the firm Equity Inmuebles SL, controlled by the Mazin, Calero and Briones families.

Meanwhile, Iberdrola has completely disposed of one of its real estate jewels, but still operates a real estate portfolio with a gross leasable area of more than 200,000 m2 and an asset value of more than €600 million.

Original story: Eje Prime

Translation: Carmel Drake

Emilio Cuatrecasas Buys Empordà Golf For €20M

10 July 2017 – Expansión

Emilio Cuatrecasas is continuing his commitment to the Costa Brava. A group of investors led by his holding company, Emesa Corporación, is finalising the purchase of Empordà Golf Resort from Habitat Inmobiliaria for around €20 million. The operation involves two 18-hole golf course in Gualta (Girona) and a hotel complex, which has 87 rooms and which is managed by Double Tree by Hilton.

The resort had awakened interest from other investors, but in the end, the lawyer has taken the lead in the bidding. The operation will now begin a due diligence phase. The group led by Emesa will go on to control 90% of the capital of the sports facility given that the remaining 10% will continue in the hands of numerous small shareholders, who are also members of the golf course.

The complex was constructed in 1996 by the Figueras family – the former owners of Habitat – and, since the beginning, its members have included well-known Catalan business people, such as Emilio Cuatrecasas himself, Pedro Fontana and members of the Puig, Esteve and Uriach families. Besides the hotel, the resort includes a residential area, with rental apartments and homes.

The purchase of Empordà Golf will not see the asset form part of the chain of rural hotels that Emilio Cuatrecasas is promoting in the Empordá region. In 2016, the lawyer announced his intention of launching a new brand specialising in small, high-end hotels and last summer, he completed his first acquisition: a small palace in Ullastret, which he will transform into a hotel after investing €7 million. Although this asset is located in the lawyer’s target region, the hotel at Empordà Golf does not fit with the profile of unique buildings that he is looking for in that case.

Emesa groups together the business and real estate stakes owned by Cuatrecasas and its assets are worth more than €480 million.

Habitat, which is chaired by Bruno Figueras, continues under the control of banks and international funds.

Original story: Expansión (by M. Anglés and J. Orihuel)

Translation: Carmel Drake

Iberdrola Sells 55% Of Hotel Hilton Barcelona For €80M

22 June 2017 – Expansión

Iberdrola Inmobiliaria has completed the sale of 55% of Hotel Hilton Diagonal Mar in Barcelona to the real estate division of the insurance company Axa (Axa Investment Managers- Real Assets). The operation has been closed by Axa on behalf of one of its clients, said the vendor in a statement issued on Tuesday.

The energy group’s real estate arm will retain ownership of 45% of the property. Iberdrola Inmobiliaria will receive €80 million for the percentage stake sold.

The Hotel Hilton Diagonal Mar, inaugurated in 2005, is operated by the chain Hilton Worldwide under a long-term lease contract. The four-star establishment contains 430 rooms, of which 20 are suites.

In the operation, the vendor has been advised by the consultancy firm Irea and the law firm Ashurst. Currently, Iberdrola Inmobiliaria owns a portfolio of rental assets spanning a gross leasable area (GLA) of more than 217,000 m2. Its most iconic property is the company’s headquarters in Bilbao.

Moreover, the company is developing around 300 homes, located mainly in the Community of Madrid, although it also has two projects on the coast. In addition, Iberdrola Inmobiliaria is working on a project comprising 42 villas located in the Islas del Mar area (Puerto Peñasco) of Mexico.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Iberdrola Puts Hilton Diagonal Mar Hotel Up For Sale

21 March 2017 – Expansión

Iberdrola has hung the “for sale” sign up over the jewel in the crown of its real estate subsidiary: the building that houses the Hotel Hilton Diagonal Mar, a four-star property located at the intersection of Calles García Faria and Taulet, in the Barcelona neighbourhood of Diagonal Mar.

The company has contracted the real estate consultancy firm Irea to sell the asset, which has an asking price of more than €150 million, according to market sources.

These sources also indicate that the process will be restricted and that they will look to attract four or five candidates interested in acquiring the asset.

The building that houses the Hilton Diagonal Mar is the largest asset in the real estate subsidiary’s current portfolio, behind Torre Iberdrola in Bilbao, which is the corporate headquarters of the multinational company and is therefore strategic for the energy group and not susceptible to being sold.

Iberdrola’s real estate subsidiary has different types of assets in its portfolio, ranging from primary homes and tourist apartments, to offices, industrial warehouses and shopping centres. Currently, Iberdrola Inmobiliaria has a portfolio of real estate assets under management with a combined gross leasable area of more than 200,000 m2.

In Barcelona, the company owns the office buildings Torre Auditori and Torre Marina (in the final phases of construction).

The hotel now up for sale, work of the architect Oscar Tusquets and opened in 2005, was developed by the real estate subsidiary of Iberdrola.

Agreement with Hilton

Just before the construction work was completed, the company reached an agreement with Hilton whereby the hotel chain would take charge of the operation of the establishment for 20 years.

The Hilton Diagonal Mar has almost 420 rooms and around 20 suites, as well as multi-functional meeting rooms and a ballroom with capacity for 1,000 people. The building, which is oriented towards corporate events and conferences, is located opposite the Diagonal Mar shopping centre, a stone’s throw away from Barcelona’s International Convention Centre (CCIB) and 18 km from the airport.

Real estate investment in hotel assets returned to record figures in 2016. In this way, almost a quarter of all investment in commercial assets was linked to hotel assets.

Specifically, last year saw investment volumes of €2,200 million, the second highest amount ever recorded, thanks to a boost from some significant transactions, such as the sale of Merlin’s hotel portfolio – comprising 19 hotels and 3,645 rooms – to Foncière des Murs for €535 million. Likewise, last year, the Hotel Villa Magna was sold to the Turkish group Dogus for €180 million, in what is still the highest grossing operation to date in terms of price per room (€1.2 million), ahead of the almost €800,000 per room that was paid for the Hotel Ritz in 2015. (…).

Original story: Expansión (by R. Arroyo and M. Á. Patiño)

Translation: Carmel Drake

Irea: Hotel RevPAR rose by 12.7% In Madrid In 2015

14 July 2016 – Expansión

Tourism in Madrid is booming and recording some good results, both in terms of demand and the operating profit of hotels in a destination that was particularly affected by the crisis. In this way, the upwards trend in hotel profitability, which began in 2014, is expected to continue for the next few months. According to a report prepared by Irea, the city of Madrid, which recorded a 12.7% YoY increase in average revenue per available room (RevPAR) in 2015, to €59.70, may see room rates return to their pre-crisis levels within the next twelve months.

The profitability of the hotel market in the capital, which closed 2008 with a RevPAR of €66, suffered from a decrease of almost 30% since the start of the crisis, but has been gradually recovering over the last two years.

In this vein, RevPAR grew by 2.8% during the first five months of this year to amount to €62.40.

In terms of demand, although occupancy rates continue to rise, the cumulative growth during the five months to May was 2.3%, compared with more accelerated growth during 2015. The main reason for this moderation (in growth) is that the International EAU Meeting has not been held in Madrid this year, since it is a bi-annual event.

Looking ahead to the next few months, hotel operators estimate growth of around 10% in terms of overnight stays during the summer season compared with last year.

Investor interest

The recovery of the hotel market in Madrid since 2013 is appealing to investors, who expect the recovery to continue into the medium term. The entry of new international hotel chains, such as Four Seasons, W and Hilton, as well as initiatives being carried out by the Town Hall to regenerate and pedestrianize the city centre, will continue to boost the recovery of this destination, according to Irea.

As a result, Madrid, unlike Barcelona, is continuing to generate interest amongst international investors, as evidenced by operations such as the purchase of Hotel Villamagna by the Turkish conglomerate Dogus Group and the sale of Hotel Suecia.

The shortage of products in Barcelona – Madrid’s main competitor – and the moratorium in the Cataluñan capital mean that Madrid is the most active investment market at the moment and the preferred target for domestic and international funds and family offices.

During 2015, investment in the hotel market in Madrid amounted to €582 million, compared with €163 million in 2014.

Original story: Expansión (by R.Arroyo)

Translation: Carmel Drake

The Pérez Gil Family: Accor & Hilton’s Spanish Partner

1 February 2016 – Expansión

Routemap / Hoteles Temáticos, which works with giant players in the hotel sector through franchise contracts, expects to double in size and revenues over the next four years.

The Pérez Gil family is making closer ties with large international hotel groups. The family, which already has a partnership with the French company Accor, has now signed a similar agreement with Hilton. A new partner, but the same modus operandi: a franchise agreement that allows Hoteles Temáticos, the company owned by the Pérez Gil family, to manage hotels and, in exchange for a fee, use Accor and Hilton’s brands and distribution channels, which have 25 million and 74 million users, respectively, in their loyalty programs.

This summer, Hilton will open the doors of its first hotel in the centre of Madrid – until now the hotel giant had just one hotel in the city, next to the airport (pictured above) – under the Double Tree brand, which will debut in the capital. The 4-star property will have 61 rooms and will be located on Calle San Agustín, opposite Congress. The work to renovate the building, which housed offices until now, will cost around €4 million. In parallel, the Pérez Gil family has paid €8 million for 50% of the property.

In addition to this project with Hilton, which will allow the family to raise its profile in the US market, Hoteles Culturales is finalising several other new additions. It currently operates three hotels under franchise agreements with Accor in Madrid and Barcelona, as well as a complex containing 16 apartments in the capital and another (unbranded) 3-star property in Alfaro (La Rioja). “Our objective is to increase our portfolio from 400 rooms to between 800 and 1,000 rooms by 2020, and for our turnover, which currently stands at €10 million, to grow to €25 million”, says Guillermo Pérez Palacios, Director General of Hoteles Temáticos and the son of Antonio Pérez Gil, who used to be the Chief Operating Officer of NH, when the chain founded by Antonio Catalán had six hotels.

Royalties

In the short term, Hoteles Temáticos will focus on Barcelona and Madrid…but Bilbao, San Sebastián, Porto and Lisbon also feature on its radar. The company is looking for management contracts, and, depending on the opportunity, investment contracts. And the door is also open to new partners, even though the involvement of international brands can increase investment costs by up to 20%, due to the high quality and safety standards such brands demand.

Agreements with overseas brands include the payment of royalties for the use of those brands and their distribution channels. Nevertheless, the formula has its benefits: “The consistency of the brand makes up for (the associated costs) and helps to make investments more effective”. At the Hotel Ibis Styles Madrid Prado, the Pérez Gil family’s first franchise contract, 55% of reservations are generated by Accor’s sales channel. According to the franchisee, brands allow hotels to increase revenues per room by between 10% and 15% compared with those charged by independent hotels and domestic chains. “Brands have allowed us to reduce our dependence on online travel agents”.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Hilton To Open Hotel In Centre Of Madrid

11 November 2015 – Expansión

The US giant is set to debut its Double Tree brand in the heart of the capital, with a 61-room hotel on Calle San Agustín, which the Pérez Gil family will manage under a franchise agreement.

Hilton is joining the hotel battle in the centre of Madrid. The US group will debut its Double Tree brand in Madrid in 2016, with a hotel in the tourist centre of the capital.

Specifically, it will open a hotel in a building that currently houses offices on Calle San Agustín, Madrid. This building is owned by the Pérez Gil family, which also owns several other hotels in Madrid. The owner will take responsibility for the renovation of the building and will manage the four-star hotel under a franchise agreement.

Hilton, whose only presence in the capital until now has been near the airport, is moving into the centre to compete against Four Seasons and Mandarín, which are preparing to open hotels of their own in the Canalejas complex and in the Ritz, respectively. The US chain also participated in the bid to manage the Hotel Miguel Angel, but in the end that contract was awarded to Bluebay.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Caja Madrid’s Former HQ Is Up For Sale

5 November 2015 – Cinco Días

The former headquarters of the Caja Madrid is up for sale. La Fundación Montemadrid has engaged Irea to search for a buyer for the historical building, located a short distance from the Puerta del Sol in Madrid.

La Fundación Montemadrid, formerly known as ‘Fundación Obra Social y Monte de Piedad de Madrid’, plans to sell the whole property, excluding the premises where Monte de Piedad undertakes its activity, which will be made independent from the rest of the building. In total, the property has a surface area of 25,000 m2, which maybe used as a hotel, retail or office space.

Sources in the market consider that it is likely that the building will be converted into a “luxury five-star” hotel, which may also include some retail space.

If the building is converted into a hotel, then it would be highly coveted by international operators, at a time when Spain is under the spotlight thanks to the decision by Four Seasons to operate the hotel in the Canalejas Complex, and the purchase of the Ritz by Mandarin and Olayan. Meanwhile, in the Plaza Mayor, the Portuguese group Pestana is planning to open a five-star hotel in the Casa de la Carnicería.

Domestic and international investors, both hotel chains and investment funds have already expressed their interest in the property, which could represent the gateway into Madrid for franchises such as Hyatt, Kempinski, Hilton, W and Shangri-La. The future hotel would have around 200 rooms, as well as terrace space measuring 3,000 m2, one of which would be on the roof, with panoramic views of the city. The price of the property could exceed €100 million, and the buyer would also have to factor in the cost of the refurbishment.

No architectural protection

One of the features of the property is the lack of architectural protection, with the exception of the baroque doorway that overlooks the Plaza de las Descalzas. This makes the building a unique opportunity in the centre of the capital, according to market sources, vis-à-vis the Canalejas project, which is being developed by Villar Mir, whose construction has been unblocked this week by the courts, and Edificio España, acquired by the Chinese group Wanda, which had requested permission to dismantle the protected façade of that building brick by brick, to then rebuild it. That request was rejected by the Local Historical Heritage Commission of Madrid. Market sources believe that the operation could be closed by the end of this year or the beginning of 2016, and that the property, if it does end up being converted into a hotel, would open its doors in 2018, after the Four Seasons.

Original story: Cinco Días

Translation: Carmel Drake