AXA Investment Managers - Real Assets has agreed a pre-let to international boutique hotel operator Room Mate Hotels at the hotel on Gran Via 43 bis in central Madrid, which it acquired for circa EUR40 million last year, on behalf of an institutional client.
Situated in a prime location in central Madrid, the 7,500 sq m (80,729 sq ft) hotel is an historic building comprising 130 bedrooms, across 10 floors, which AXA IM - Real Assets plans to fully renovate, with a target opening in 2018-2019.
Gran Via is the most visited commercial region in Madrid, receiving up to 30,000 pedestrians per day. The street includes international brands and flagship stores and is a dominant area for hotels, as well as having a high concentration of restaurants, cinemas and theatres. Gran Via is also a hub within Madrid’s public transport network, with the Callao metro station (lines 1, 2, 5) and regional trains (C-3 and C-4) very close to the asset.
“The acquisition of this property represents a rare opportunity to invest in a prime and distinct central Madrid hotel, which was vacant at the time but offered considerable asset management potential. We are currently in the process of finalising our plans for a full refurbishment of the hotel. Securing such a distinguished operator as Room Mate Hotels is central to what we are trying to achieve and to unlocking the value of this great asset. Gran Via is regarded as the Broadway of Madrid, regularly drawing record numbers of visitors to its high concentration of retail and leisure attractions, and we believe that the new Room Mate hotel will further enhance its appeal.”