14 June 2016 – Expansión
Hispania has purchased 100% of the shares in the company Real Estate San Miguel, which owns three hotels in Ibiza – the Hotel Galeón (4 stars and 182 rooms), the Hotel Cartago (3 stars and 196 rooms) and the Hotel Club San Miguel (3 stars and 106 rooms) -, for €32 million.
In addition, Real Estate San Miguel is the owner of several apartments next to Hotel Cartago and a restaurant attached to the Hotel Club San Miguel. The assets are all located in Cala de San Miguel, on the beachfront.
Hispania will undertake major investments in these properties, depending on the final category (star rating) of the hotels and the outcomes of the negotiatios with the operators.
Investment in renovation work
Specifically, the Socimi controlled by Azora and in which George Soros owns a stake, plans to carry out a complete renovation of the three hotels at the end of the 2017 season. The initial planned investment amounts to €35 million.
The plans of the company, which debuted on the stock exchange in March 2014, involve maintaining the current operators of the hotels until the end of the 2017 season, when the management of the three assets will revert to a single operator.
Currently, Iberostar operates Hotel Galeón, whilst Stella Polaris is responsible for the management of the other two establishments. The Socimi will now analyse which hotel chain is, in its opinion, the most suitable to take on the management of its new hotels in Ibiza from 2017 onwards.
This operation, advised by Aguirre Newman, allows Hispania to strengthen its commitment to the vacation hotel sector in the Balearic Islands and, specifically, in Ibiza, where it already owns the recently repositioned Hotel Barceló Pueblo Ibiza.
Hispania also owns a stake in Bay Hotels & Leisure – the Socimi created together with Barceló in 2015, which also focuses on the vacation hotel segment – . The company’s share price fell by 4.3% on the stock exchange yesterday to close at €11.33/share.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake