Princeton Investments has sold its building on Calle Fomento in Plaza de Santo Domingo in Spain’s capital to French hotel group Boissée Finances.

Princeton said Boissée has bought the 10,700sqm building located in Madrid to convert into a 155-room upscale design hotel.

Financial details were undisclosed.

Princeton bought the building on a sale and leaseback basis from Telefonica in 2015 which expires in 2022.

During its four years of ownership, Princeton developed plans to transform the building’s use, and the disposal marks the completion of their business plan, Princeton said.

Princeton has been active in the Spanish market over the past five years, acquiring a number of residential developments and refurbishments, office investments in Madrid as well as several student housing developments.

The completed value of its Spanish investment programme is in excess of €200m, it said.

CBRE and Uría Menéndez advised Princeton on the latest deal.

Miguel Casas Albandor, head of hotel investment properties, continental Europe at CBRE said: “The building has all the characteristics to become one of Madrid’s most iconic hotels. It stands out by its location and layout, with more than 500 sqm of rooftop terrace that has amazing views over Madrid’s historic centre.

“The positive hotel trading and investment environment in the city is positioning Madrid as one of the top European capitals within the Hotel Investment market.”