Hong Kong-based Gaw Capital Partners has entered the European hospitality market with the acquisition of a 50% stake in Hospes Hotel Group, a Spanish boutique hotel brand.

Gaw has formed a joint venture with investment firm Omega Capital to buy the hotel operator’s €125m assets.

Hospes operates 10 properties located in various prime locations across Spain.

The asset will be held in Gaw’s European Hospitality Fund I managed by GCP Hospitality, the hotel subsidiary of the real estate private equity firm.

Goodwin Gaw, the chairman and managing principal of Gaw Capital Partners, said: “Entering the Spanish market with one of Spain’s most distinguished entrepreneurs marks an important milestone for Gaw Capital Partners and its hospitality platform, GCP Hospitality.”

“We will further expand the Hospes brand by opening more properties in tourist areas and strategic cities within Spain and Southern Europe,” he said.

Christophe Vielle, the CEO & co-founder of GCP Hospitality, said: said the outlook for tourism in Europe is positive.

“We will leverage the reputation of Hospes Hotel Group as well as our international network to increase the brand’s footprint,” said Vielle.