Tag: Riu Hotels & Resorts

Riu Closes the Sale of Edificio España’s Commercial Space to Corpfin

1 February 2019 – Preferente.com

The 15,000 m2 of commercial space in Edificio España now has an owner. The party in question is Inbest Real Estate, the investment vehicle owned by Corpfin Capital Real Estate, which has signed a purchase agreement with the hotel chain Riu Hotels & Resorts, the owner of the property.

In a statement addressed to Preferente.com, the hotel chain explained that this agreement will enable the opening of five flagship stores for retail operators, including restaurant and textile firms, which will complement the opening of the new Hotel Riu Plaza España. “In that way, we will provide an even greater boost to the area through a tourist, leisure and commercial offer”, said the chain (…).

“We believe that having Corpfin Capital Real Estate as an ally to launch the retail space in Edificio España is the best way of getting the most out of the property”, said Luis Rui (pictured above, left), CEO of Riu Hotels & Resorts. Meanwhile, Javier Basagoiti (pictured above, right) Managing Partner of Corpfin Capital Real Estate, highlighted that their idea is “to choose the operators that best reflect the philosophy of the building, in coordination with Riu, respecting the hotel activity and configuring the premises towards the creation of flagship stores for first-rate operators” (…).

Original story: Preferente.com 

Translation: Carmel Drake

CBRE: Hotel Inv’t Reached Record Figure of €3.75bn in 2017

29 December 2017 – Europa Press

Investment in the hotel sector in Spain grew by 83% in 2017 compared to the previous year, to reach a total transaction volume of €3.75 billion, according to data from the consultancy firm CBRE Hotels.

The cumulative figure represents a historical record in the Spanish market, exceeding the previous record set in 2015. The increase is primarily due to strong demand from investors to buy and capitalise hotel assets, whereby taking advantage of the economic and real estate recovery in Spain.

According to CBRE Hotels, 190 hotel assets were sold in Spain in 2017, up by 23% compared to 2016, which represented an increase of 25% in terms of the number of rooms sold (28,000). Moreover, a further 2,200 future rooms were also sold last year in buildings and projects still under construction.

The most sought-after hotel assets were 4-star establishments, accounting for 42% of all investments.

The Canary Islands and the Balearic Islands accounted for almost 40% of all investments

In terms of the main investment destinations in the hotel sector, the Canary Islands (21%) and the Balearic Islands (18%), together with Madrid (17%) led the ranking, followed by Barcelona and Málaga. The most significant changes compared to 2016 were seen in Barcelona and the two island regions, which went from accounting for 36% to 15% in the case of the former and from 24% (combined) to 39% in the case of the latter.

In terms of the type of properties, holiday hotels accounted for 60% of the total compared with 40% urban properties. On the other hand, buyers invested in individual assets in 60% of cases, rather than in portfolios (40%).

Regarding the type of buyers or investors that acquired the most hotel assets last year, including not only hotels but also tourist apartments, aparthotels and land and buildings destined for hotel use, institutional investors participated in 55% of operations, followed by private entities and family offices, with 22% of transactions, and other hotel chains, with 21%.

Main operations

The largest operation of the year involved HI Partners, the hotel platform that Banco Sabadell recently sold to Blackstone for more than €630 million. The change of owner of Edificio España also hit the headlines – it was acquired by Riu Hotels & Resorts for €272 million. And finally, the Wave portfolio, owned by Starwood Capital and Meliá, comprising 4 hotels in Lanzarote, Ibiza, Torremolinos and Mallorca, was sold in the middle of the year to London & Regional Properties, on advice from CBRE (…).

“The excellent performance of the main tourism markets and the excess liquidity in the capital market have led to a historic year with more than 150 transactions and where institutional players have been the protagonists once again”, explained the National Director of CBRE Hotels, Jorge Ruiz.

Moreover, he added that “the outlook is very positive and we expect to see more concentration in the market in 2018 and a renewed interest in the tourism industry in our country”.

Original story: Europa Press

Translation: Carmel Drake

Hotel Chain Riu Ends Up Acquiring Edificio España

2 June 2017 – El Mundo

The soap opera surrounding the sale of Edificio España in Madrid reached its finale yesterday morning, with the completion of a three-way operation, which saw the Chinese Group Wanda official sell the building’s deeds to the hotel chain Riu. The hotel group reached an agreement with Grupo Baraka to acquire 100% of the property and to subsequently undertake the necessary renovation to convert it into the first hotel in Spain to operate under its Riu Plaza brand.

All of the parties met at the notary’s office yesterday morning in Madrid, and once the purchase of the property from Wanda by Grupo Baraka (which held the initial purchase rights) had been formalised, the latter sold the property to Riu Hotels & Resorts. The consideration paid amounted to €272 million, according to the consultancy firm JLL, which has advised the sale.

“Our strategic plans include opening a Riu Plaza hotel in Spain and this opportunity in Madrid, in an unbeatable location and in an iconic building, completely fulfil all of our requirements,” said Carmen and Luis Riu, CEOs of Riu Hoteles. “The operation had been on the cards for several months before the option opened up of Riu acquiring 100% of the building. After analysing that opportunity in detail, we decided that we didn’t want to waste it”, explained the directors.

Trinitario Casanova, President of Grupo Baraka, will take responsibility for leasing the retail space, measuring 15,000 m2, where several department stores will be opened.

The building work could start today

After hearing of the sale, the Councillor for Sustainable Urban Development at the Town Hall of Madrid, José Manuel Calvo, said that the new owner of Edificio España could start the building work to consolidate Edificio España right away. The licence to undertake the structural work was granted on 31 March and its terms are “not affected” by the identity of the building’s owner.

The processing of the permit to open a hotel in the skyscraper will take a bit longer. Sources at the Palacio de Cibeles (the Town Hall) predict that the green light will be given for the construction of the establishment in “the autumn”, given that the municipal technicians and Baraka’s architects have been working together on this project for several months now.

In terms of the retail surface area, which will be housed on the lower floors of the property, in Plaza de España, the presentation of an affidavit is all that is required to start the refurbishment work.

The hotel

The future Hotel Riu Plaza will occupy 24 of the 27 floors in Edificio España, whilst the remainder will be used as retail space. The establishment will have approximately 650 rooms and will be a 4-star property.

The hotel will also have a space measuring more than 1,800 m2 for events, which will include an open plan room measuring 1,500 m2, with 6 m high ceilings, which will become a unique space in the centre of Madrid.

The establishment will also have two restaurants, a rooftop swimming pool, where there will also be a Sky Bar and an additional space for events, spanning more than 900 m2.

Original story: El Mundo (by Luis M. Ciria, Marta Belver and Roberto Bécares)

Translation: Carmel Drake