Spanish hotel group Barceló Hotels & Resorts is in advanced negotiations to divest a portfolio of seven hotels on the Canary islands, PropertyEU has learned.
Spanish hotel group Barceló Hotels & Resorts is in advanced negotiations to divest a portfolio of seven hotels on the Canary islands, PropertyEU has learned.
According to well-informed market sources, Barceló is on the verge of closing the disposal of the assets, which generate close to €100 mln in annual revenues.
Earlier this year the hotel group hired US-headquartered private equity investment bank Carlton Group to market the portfolio.
The package is expected to fetch between €270-290 mln. It provides some 3,500 hotel rooms and another 5,000 m2 of retail space across three units.
The main assets are the four-star Hotel Barceló El Castillo and Hotel Fuerteventura Spa in Antigua (Fuerteventura), the four-star Hotel Jandía Mar and Hotel Jandía Playa in Southern Fuerteventura, the four-star, 442-room Hotel Barceló Lanzarote in Costa Teguise, Lanzarote, the four-star Hotel Santiago in Tenerife, as well as the four-star, 490-room Hotel Barceló Margaritas in Playa del Inglés, Gran Canaria.
Sources say the hotels are in very good condition as the owner spent €35 mln of extraordinary capex to renovate them in the past three years alone.
The hotels boast a good occupancy rate, high cash flows and are expected to benefit from the forecast recovery in Spanish and European tourist demand.
The disposal is part of the hotel company’s strategy to deleverage the business and have one third of its portfolio owned by independent investors. Barceló owns a total of 160 hotels in 17 countries.
