European real estate investment manager ActivumSG has sold the 118-room Palacio Solecio hotel in Spain for €51m.
ActivumSG sold the 87,000sqft Palacio Solecio in Malaga to an unnamed buyer.
Built in the 18th century as an Andalusian palace, the asset fell into disrepair over time. ActivumSG’s Iberia I fund acquired the property for €8m and embarked on a restoration project to transform the palace into a modern luxury hospitality venue.
The asset is currently operated by Marugal Distinctive Hotel Management under a hotel management agreement.
Saul Goldstein, founder and CEO of ActivumSG, said: “Given the slower transactional landscape, this sale demonstrates the clear appetite among investors for high-quality, well-located hospitality assets. Spanish hotels stand as one of our longest-held conviction calls and sit within our current wider focus on the accommodation or living sectors.
“Across our direct real estate and corporate platform strategies, we believe there are ongoing opportunities in housing, hospitality, and elderly care due to a shortage of high-quality options despite rising consumer demand.”
Brian Betel, the head of direct asset transactions at ActivumSG, said: “Complex repositioning plays like Palacio Solecio are only possible with a genuine in-country presence. You need boots-on-the-ground to identify what are often hidden opportunities and then to deliver what was a comprehensive yet sensitive reimagining of a heritage site.
”The strong support and collaboration between the City of Malaga and ActivumSG was also critical to the project’s success.
“We remain very active in Spanish hospitality. We are adopting a dual strategy of ground-up development in supply-constrained sub-markets together with acquiring and modernising existing owner-operated hotels to create institutional-quality assets.”
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