Hispania has signed a purchase option with Alchemy, a European private equity firm and investor in special situations, for the acquisition of seven hotels of the chain Alua Hotels & Resorst for a total of 165 million euro. The transaction is expected to be completed by the end of February 2018.
The portfolio of Alua Hotels & Resorts subject to acquisition has more than 1,700 keys distributed in seven hotels in the Balearic Islands (AluaSoul Palma, AluaSoul Mallorca Resort, AluaSoul Alcudia Bay, AluaSoul Ibiza and AluaSun Torrenova) and the Canary Islands (Ambar Beach, in Fuerteventura and Parque San Antonio, in Tenerife).
Alua Hotels & Resorts will remain as the operator of the hotels through a lease agreement with a fixed component and a variable one in line with the rest of the hotels of Hispania. As part of the transaction Hispania expects to invest close to 20 million euro in refurbishing four assets, as the remaining three were subject to a complete repositioning during 2016 and 2017.
With this transaction Hispania increases its presence in the Balearic Islands, strengthening its position in the Island of Mallorca. Furthermore, Hispania also diversifies the management of its hotels with a new operator. After completing this transaction Hispania will have a total of 12,938 keys in 45 hotels, consolidating as the largest hotel owner in Spain.
“Hispania demonstrates once more its execution capabilities with this transaction which allows a geographical and operators diversification while reinforcing its leadership in the resort market” says Hispania.
Alchemy said “the closing of this transaction credits the quality of the assets of Alua Hotels & Resorts and consolidates the company as an emerging player in the hotel sector”.
Source: Hispania Press Release