Starwood JV sells portfolio of Spanish hotels for €230m
Starwood Global Opportunity Fund X, a fund managed by Starwood Capital Group, has sold its interest in a collection of hotels across key leisure markets in Spain. The assets are owned in a joint venture with Melia Hotels International. The buyer was London & Regional Properties.
The portfolio consists of four well-established beachfront hotels representing 2,070 rooms that will continue to be managed by Melia following the transaction. Terms of the transaction were not disclosed; however, the sales price is estimated to be €230 million ($262 million), according to PropertyEU and AURA Real Estate Experts.
The portfolio includes the Sol Principe in Malaga, the Sol Lanzarote, the Sol House Ibiza mixed by Ibiza Rocks and Sol Palmanova in Mallorca.
Starwood Global Opportunity Fund X’s controlled affiliate owns 80 percent of the joint venture that owned the hotels, while Melia Hotels International owns the remaining 20 percent.
The joint venture continues to seek out opportunities to acquire and integrate additional properties into the portfolio with a focus on the Mediterranean resort markets.
Madrid ranks third for hotel investment in Europe, according to Savills’s published top 10 list in May. The list is based on factors such as the overnight visitor market, GDP and employment growth forecasts, stock levels relative to demand, and indicative prime yields as of first quarter 2017. Dublin and Milan held the first and second positions, respectively.
Approximately 79 hotels in Spain were acquired during the first six months of 2017, for approximately €1.66 billion in sales volume, according to Irea, a consultancy firm.
Spain received almost 28 million international tourists during the first five months of 2017, which represents an 11.6 percent increase compared to the first five months of last year, according to Reuters.
Hotel investment in Spain totaled to €2 billion ($2.3 billion) in 2016, for the second year in a row, according to a study conducted by Deloitte. By geography, Madrid was the region that recorded the highest volume of investment, accounting for 43 percent of the total, followed by the Canary Islands and Cataluña.