Azora Group and Palladium Hotel Group have teamed up to invest up to €500m in hotels across Europe and the Mediterranean.

The newly created joint venture, of which Azora owns 75% and Palladium Hotel owns the remaining 25%, has already invested €225m to acquire three hotels.

In a joint statement, the companies said they have bought three hotel complexes owned by the hotel group for €115m in total and have made an additional €110m of investment in the form of capital expenditure.

The acquired assets include the BLESS Hotel Ibiza and Fiesta Hotel Tanit, both located in Ibiza as well as the Fiesta Sicilia Resort in Cefalú, Sicily.

The joint venture plans to refurbish the assets.

Concha Osácar, founding partner of Azora, said: “The creation of this alliance falls within out firm decision of investing in the resort hotel segment, with a strategy to transform assets with unique locations with the help of a leader in cutting edge innovations within the hotel segment such as Palladium Hotel Group.”

Abel Matutes Prats CEO of Palladium Hotel Group, said: “For Palladium Hotel Group this joint Venture confirms its bet on a sustainable growth of its 5 star brand exposure worldwide as well as boosting the company as hotel operator under management contracts.

“We cherish this joint venture with Azora who has trusted our capacity to reposition hotels with highly differentiating proposals.“