Jersey-based private equity investment manager ActivumSG Capital Management (ASG) has unveiled its latest hotel deal in Spain, after inking a deal with boutique operator Marugal to manage a restored Málaga palace.
Financial details were not disclosed.
Acquired for ASG Iberia fund I, the new hotel on Calle Granada opens later this year with 118 keys. Palacio Solecio comprises a restored Andalusian palace, with an annex built on adjacent plots.
Saul Goldstein, ASG’s founder and managing partner, said: 'We have turned an eyesore into a hotel that will set the benchmark for luxury in Málaga.
'Palacio Solecio is a big step forward for efforts to regenerate the city centre. Our hotel strategy reflects our creative approach to repurposing buildings and development.'
Palacio Solecio is the fourth investment to date in ASG’s Spanish hotel strategy, which focuses on locations where room numbers are failing to keep up with the boom in tourism and business travel. ASG’s projects will deliver more than 1,000 rooms in total, giving a projected end-value for the portfolio in the region of €500 mln.
According to ASG, the 230-year-old building fell into dereliction after the previous owners halted a planned redevelopment of the property in the financial crises of 2008.
ASG said that the firm's local team led its restoration and saw an opportunity to increase the hotel’s capacity by building an annex on neighbouring plots on Calle Tomas de Cozar, sourced in two off-market transactions.
The annex will provide another 50 rooms, pool and rooftop bar, alongside the 68 keys crafted in the restored palace.
