KKR and Dunas Capital have sold six hotels in Spain worth €165m to a partnership led by Israeli hotel chain owner Fattal Group.
The acquisition is the first deal made by Fattal as part of a joint venture with institutional investors Menorah, Harel, and Leumi Partners.
The assets located on the islands of Ibiza and Mallorca, comprise four hotels and two apartment hotels and currently form part of the Alua Hotels & Resorts chain.
The joint venture will finance the transaction from its existing sources, in addition to a yet-to-be-received €95m bank loan. Fattal plans to invest a further €20m in enhancing the facilities, amenities, and overall customer experience.
Guy Vardi and Yaniv Amzaleg, who oversaw the transaction on behalf of Fattal, said: “This exciting acquisition reflects Fattal’s ability to identify strategic opportunities and complete transactions of significant scale with top-tier international sponsors and partners.
“It presents us with a rare opportunity to acquire a high-quality portfolio of assets, timed to capitalize on the potential for a near-term return to travel, as well as the hotels’ fantastic locations - which will remain in high demand for years to come.”
Shai Raz, CEO of Fattal Hotels in Spain, said the acquisition is consistent with the company’s ambitious growth strategy to expand in the most attractive areas of the European continent.
”We are delighted that with this deal we have created a strong presence on the Balearic Island and strengthened our overall position in Spain by bringing the total number of Spanish hotels to 16.”
Ronen Nissenbaum, CEO of Fattal Hotels in the UK, The Netherlands, and Spain, said: “With this acquisition, the company strengthens its presence as a leader in European holiday destinations. In addition to the quality of our hotels and our people, we look forward to leveraging our expertise and capabilities to drive positive performance and provide our customers with even greater products, experiences, and services”
KKR acquired the hotel portfolio through KKR Real Estate Partners Europe, the firm’s first dedicated European real estate fund.
Rosa Brand, director of EMEA real estate at KKR, said: “Since acquiring these hotels in 2017, we have invested significantly to transform and modernise the portfolio alongside our partners Dunas Capital and Alua, consistent with our European strategy of working with best-in-class local developers and operators.”
“We believe that the Spanish tourism sector continues to have great potential and we congratulate Fattal Hotels for identifying this fantastic opportunity and investing in this trend,” said David Angulo, chairman of Dunas Capital.
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