A joint venture involving US and UK firms has acquired the Hotel Silken Diagonal in Barcelona for an undisclosed price.
The buyers are UK-based Benson Elliot Capital Management and US-based Walton Street Capital, in partnership with Highgate, a global real estate investment and hospitality management company.
The hotel was sold by a consortium of investors led by London-based Oak Hill Advisors.
Located on the Avenida Diagonal, directly adjacent to the Agbar tower in Barcelona's 22@ district, the hotel provides 240 rooms across nine floors. The transaction price was not disclosed.
The deal represents the second hotel transaction between Benson Elliot and affiliates of Walton Street following the purchase of an approximately €420 mln portfolio of eight hotels in October 2015.
'We have built a strong track record in the hotel sector and believe the Barcelona market will continue to strengthen, supported by strong local fundamentals and a buoyant tourism market. Furthermore, this transaction provides us with a rare and compelling opportunity to acquire a hotel unencumbered by brand and management,' commented Trish Barrigan, Benson Elliot senior partner.
Benson Elliot is familiar with the 22@ district of Barcelona, having invested in and realised the Granada 150 site and Cornerstone Poblenou office development within the last two years.
As part of the sale, Highgate will also assume management of the hotel which will be rebranded as the Gates Hotel Diagonal Barcelona, a Highgate brand.
'We are pleased to extend our existing partnerships with both Benson Elliot and, long-time partner, Highgate in the acquisition of the Hotel Silken Diagonal,' said Robert Bloom, Walton Street senior principal. 'The Barcelona market features compelling supply and demand fundamentals which should further support our investment thesis over the next several years.'
