Sales in Valencia’s Hotel Real Estate Market Reach €100 Million During the First Six Months of 2019

9 September 2019

The volume of sales in the Valencian hotel sector totalled 110 million euros during the first semester of 2019, 57% more than during all of 2018. Two major transactions significantly boosted that figure, including the sale of the Meliá Valencia hotel for 42.3 million euros and the sale of the Travelodge hotel, a 116-room hotel next to the Valencia airport, for €15 million.

Socimis and investment funds have been the principal drivers of the sales, as the city and its tourism sector have seen a sustained uptick in growth. In parallell, the markets in Madrid and Barcelona have also seemed to reach maturity, providing returns below 5%, about 50 to 75 basis points below those in Valencia.

Original Story: Nexotur

Adaptation/Translation: Richard D. K. Turner

Meliá, Barceló and NH Implement Asset Light Model

2 September 2019

The major hospitality groups Barceló, Meliá and NH are taking advantage of the fervour in the Spanish real estate market to sell off some of their real estate holdings to interested funds and socimis. Many of the firms are implementing an asset rotation policy, shedding capital-intensive investments and looking to switch to a policy of hotel management and leasing.

To this end, Meliá, Barceló and NH have sold hotels worth approximately 500 million euros over the last two years as a wave of new investors, many socimis, have entered the market. Meliá began its asset-light policy a decade ago, and it is looking to increase the percentage of its EBITDA from its current 32% to 50% by 2024. In 2019, it accounted for just 2%.

Barceló is following the same sort of strategy, selling a hotel in Marbella to Hispania for €19 million. In 2017, Barceló sold 24% of its hotel sector Socimi Bay for €172 million, holding into long-term leases on the hotels.

NH, now part of the Thai group Minor, sold the NH Collection Barbizon Palace in Amsterdam to the German asset manager Deka for €156 million earlier this year, while also maintaining a 20-year lease on the property. NH has assets valued at €2.1 billion, including 350 hotels, with 54,000 rooms. Of those, NH only owns 76. The rest are leased or managed by the hospitality group.

Original Story: Expansión – Rebeca Arroyo

Adaptation/Translation: Richard D. K. Turner

B&B Sells Its Last Hotel in Spain to Miratres for €1.7 Million

13 August 2019

The French hospitality group, B&B, sold its last hotel in Spain to the Miratres family office for 1.7 million euros. The hotel in Oviedo was the firm’s last directly owned property.  Now, B&B is focusing its investment strategy on long-term guaranteed rental contracts.

In this manner, B&B is looking to double its market share in Spain and Portugal from 32 to 64 hotels by 2022. The firm expects to inaugurate fifteen new venues by the end of next year, ten in Spain and another five in Portugal.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner


SafeGuard Sells Aloft Madrid Gran Vía Hotel to Henderson Park for €57 Million

12 August 2019

CBRE announced that SafeGuard Real Estate Management has sold the building that is home to the Aloft Madrid Gran Vía hotel to the European real estate asset management platform Henderson Park for more than 57 million euros.

The property, which has a  long-term management contract with Marriott International, is located an excellent location in central Madrid.

The 139-room hotel is 13 floors high and has a rooftop with an outdoor pool, a gym and a bar/restaurant.

Original Story: La Vanguardia / EFE

Adaptation/Translation: Richard D. K. Turner