Lopesan Sells Another Hotel in Canary Islands to HI Partners for €62.8M

18 April 2018 – Bolsa Mania

Ifa Hotels and Toruistik, whose main shareholder is the Lopesan Group, today closed the sale of the company that owns the Hotel IFA InterClub Atlantic, located in Gran Canaria, to HI Partners for €62.8 million, according to the hotel company.

The Canarian hotel group received cash proceeds amounting to €43.8 million for the operation; the remaining balance of €19 million has been allocated to settle the payment obligations that Ifa Canarias held with the owner company and to purchase minority interests in the subsidiaries, which remain in the company.

With this transaction, Lopesan is going to continue managing the establishment under the umbrella of its new brand “Abora by Lopesan Hotels”. The hotel, located in San Agustín (Gran Canaria) has 420 rooms and registered an average occupancy of 90% in 2017.

HI Partners is going to carry out a comprehensive renovation of the Canary Island hotel to convert it into a flagship resort in the south of Gran Canaria.

The operation follows another one carried out in June 2017 when the firm sold three of its hotels in Spain to the same fund for €104.4 million, and it is the third financial operation in which HI Partners has acquired and entrusted the management of its assets to the Lopesan Group under this brand.

Ifa, a hotel division, which is listed on the German stock market, and in which Lopesan is the majority shareholder, will strengthen the partnership with HI Partners and provide it with own resources to replace its hotel stock with new self-built accommodation products.

In this line, the group is developing a business plan in the Dominican Republic, where it plans to open a 1,000-room hotel next year in Playa Bávaro, in the Punta Cana area, and plans are afoot for the future construction of a second 5-star establishment (with 1,400 rooms).

Original story: Bolsa Mania

Translation: Carmel Drake

Lopesan Sells 3 Hotels In Canary Islands To HI Partners For €104M

2 June 2017 – Preferente

Lopesan is experiencing one of its most intense moments in its history and proof of that are the recent business operations that the company has undertaken. Specifically, it has purchased a package of more than 12 million shares in the construction company Sacyr (in a surprise move, Lopesan purchased 2.4% of Sacyr for €30 million); in addition, it has sold three of its hotels to the investor group HI Partners for more than €104 million, according to market sources.

The company has sold the following three hotel establishments, although it will continue to manage them: IFA Beach de San Agustín, the IFA Dunamar and the IFA Continental in Playa del Inglés, in Gran Canaria. This sale has already been reported to the German stock exchange.

Although the dates overlap, according to sources close to the Group’s President, the sales operation is not related to the purchase of Sacyr’s shares; “the Group owns lots of hotels that were constructed in the 1970s that need renovating, which means that it will invest the majority of this new capital in refurbishment projects”.

Another major project in which Lopesan is involved is the construction of a tourist complex with more than 1,000 rooms in the Dominican Republic. Specifically, it is working with its German subsidiary, IFA – in which it holds a majority stake – on this project, which forms part of its international expansion strategy and which will be incorporated into its portfolio.

Original story: Preferente

Translation: Carmel Drake

JLL: Hotel Investment Exceeded €2,650M In 2015

12 January 2016 – Expansión

2015 was a record year for investment in the hotel sector, driven primarily by Spanish buyers. The Canary Islands and Madrid were the stars in terms of location. Last year, 143 hotels were sold in Spain worth €2,650 million, which represents an increase of 65.6% compared with 2006, the previous record-breaking year; and more than double the investment volume recorded in 2014 – €1,180 million.

Spain was the third most popular European country for investors, behind the UK and Germany, according to a report by the consultancy firm JLL Hotels & Hospitality Group. And Spanish investors returned to the spotlight, thanks to the improvement in the domestic economy. In 2015, 74% of total investment was made by domestic buyers, compared with 58% a year earlier.

In this regard, the Socimis were the great discovery of the year. Merlin and Hispania, the two largest Socimis by market capitalisation, spent €965 million on hotels, whereby accounting for 36.4% of the total volume invested in Spain.

In terms of Spanish investors, the Socimis and investment funds were followed by Spain’s hotel chains, which accounted for 13.5% of total investment. The Catalan hotel chains H10 and Hotusa were the most active in 2015. They were followed by private investors, such as family offices, which accounted for 8.9%.

In the meantime, overseas investors accounted for 26% of total investment in Spain, with buyers from France being the most active – Accor’s acquisition of four Novotel hotels was a key deal – behind those from Germany – IFA paid €48 million for two properties in the Canary Islands – and Hong Kong – Mandarin purchased the Ritz in Madrid, together with the Saudi group Olayan-.

By type of investor, the funds increased their weight significantly during the year, specifically, up from 30.4% to 53.6% of the total. Hotel groups and private investors lost steam, in contrast to the real estate companies, which recorded a slight rise.

The Canary Islands accounted for 29.6% of total investment, benefiting from the upturn that Spain’s tourism industry is experiencing at the moment due to (political) instability in other competing countries in the Mediterranean. 31 hotels were sold there in total, primarily as a result of the partnership between Meliá and Starwood Capital, as well as due to the creation of Bay, the first pure hotel Socimi, by Barceló and Hispania.

Recovery

Madrid was the second most popular destination, accounting for 23.5% of total investment. The price paid for the Ritz hotel – €778,000 per room – was the highest recorded in Spain. Half of the operations involved five-star hotels and 43% involved four-star hotels.

Occupancy rates have improved in the Spanish capital, but the average price there continues to fall below its pre-crisis levels.

In the Balearic Islands, hotels worth more than €445 million were sold – 16.8% of the total – , above Barcelona, where 14 transactions worth €340 million were signed – accounting for 14% – above all, involving four-star properties. Despite the moratorium imposed by the mayoress Ada Colau, the Catalan city is the country’s leader in terms of profitability and the outlook there is positive.

Another trend in 2015 was the sale of hotel portfolios. 78 of the 143 hotels that changed hands belonged to a larger batch. This year, more operations of this type are expected, albeit smaller in value; and overseas Socimis and investors are expected to play a more active role. According to JLL, investment in 2016 could reach similar levels to those seen last year.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake