Barceló To Operate The Torre Madrid Hotel

18 January 2015 – Cinco Días

Metrovacesa and Barceló Hotels & Resorts signed a 20-year lease contract on Friday morning for the operation of the future hotel in the Torre Madrid, built by Metrovacesa in the Plaza de España in 1957.

The companies report that the hotel will provide superior four star accommodation, with 256 rooms, a cafeteria, a restaurant, a spa, meeting rooms and common areas.

“Metrovacesa plans to undertake major investment in the refurbishment of the first 9 floors of the building, covering approximately 22,000 square metres, with the aim of converting the hotel into a destination of choice in Madrid, unique in its design and facilities”, the companies report in a statement. The new Barceló hotel will operate alongside luxury apartments, which occupy the top floors of the building, and will become the chain’s fourth hotel in Madrid.

In 2011, Metrovacesa, a then listed company, informed the CNMV about the sale of homes in Torre Madrid for €28.7 million. The cheapest home in Torre Madrid, covering around 80 square metres, cost €530,000. The most expensive home occupies 240 square metres. The height and orientation determine the final price of homes of a similar size.

In 2005, Metrovacesa put two of Madrid’s most famous skyscrapers, the Edificio España and the Torre Madrid, up for sale. Santander acquired the Edificio España for €389 million in the same year; and last year the entity agreed the sale of the building to the Chinese group, Wanda, for €265 million.

Original article: Cinco Días

Translation: Carmel Drake

Hotel Villa Magna In Madrid Up For Sale

16 January 2015 – idealista news

The Spanish hotel sector is on the radar of investors. The combined effects of the growth in tourism, falling price of oil and weakness of the euro bodes well for the performance of the sector; and sellers do not want to miss out on the opportunity. In the luxury segment, not only are the Ritz and Miguel Angel Hotels in Madrid up for sale, so too is the Villa Magna. Its owner, the Portuguese businessman Pedro Queiroz Pereira has expressed interest in selling the property, although the bids received so far have fallen below expectations.

Although no official sales mandate has been issued yet, the Portuguese firm Queiroz Pereira is open to offers for the purchase of Villa Magna, located in the Salamanca neighbourhood of Madrid. According to market sources, the selling price is close to €130 million, a price that no investor has been willing to pay so far.

Financial sources say that the price is inflated and that the hotel is not worth more than €90 million. Idealista.news contacted the owner of the property who declined to comment.

The Portuguese holding company, which also owns the Ritz Hotel in Lisbon, purchased the Villa Magna in 2001 from a Japanese family, the Shirayamas. Six years later, in 2007, it decided to undertake a “facelift” of the hotel, which was closed for 14 months whilst renovation work was completed. Sodim, a subsidiary of the Queiroz Pereira Group (and owner of Semapa, the main industrial group in Portugal) invested around €150 million on the hotel acquisition and remodelling work.

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Hotel Villa Magna currently has 150 rooms of between 30m2 and 290m2, as well as various conference rooms, meeting rooms and a garden for outdoor receptions and dinners. It also has a wellness club with a sauna and Turkish bath.

Hotels, an investor target

In 2014, investment in hotels amounted to €1,081 million, up 37% on the previous year, to reach levels similar to those recorded before the crisis. The following transactions were amongst those that took place in the 5 star segment: the Hotel Renaissance in Barcelona was sold by Marriott International to the Qatar Armed Forces for €78 million; the Hotel Intercontinental in Madrid was sold to the Katara Hospitality Fund for around €60 million; and the Hotel Meliá La Quinta in Marbella was also sold.

Last year was also significant because more transactions were recorded in the holiday hotel sector than in the urban sector. Transactions included the acquisition of the Guadalmina Hotel in Marbella (4 star) and the Meliá Jardines hotel in Teide, Tenerife (also 4 star) by Socimi Hispania.

The arrival of the Four Seasons chain, a boost for the sector

The arrival in Spain of the luxury hotel chain Four Seasons has increased the level of interest in the renovation of historic properties, such as the Miguel Angel and Ritz Hotels in Madrid, which are currently up for sale. This foreign chain expects to open its first property in the Plaza de Canalejas, Madrid in 2017. It will be the first Four Seasons hotel in Spain.

Original story: idealista.com (by @pmartinez-almeida and tânia ferreira)

Translation: Carmel Drake