Canadian asset manager Brookfield Asset Management has acquired the Hotel Princesa Plaza complex from Colony Capital for €175 mln.
The property, located on 40, Calle Princesa in Madrid, comprises three buildings and a total area of almost 60,000 m2 distributed across hotel, retail, office and parking uses.
The four-star hotel includes 423 rooms with three F&B units and almost 1,000 m2 of event space. The retail space occupies most of the street floor, with nine units bringing together a total of 8,064 m2 occupied by recognised brands such as Starbucks, El Corte Inglés and Massimo Dutti. The office area of 5,666 m2 is currently unoccupied while the car park comprises 14,000 m2.
With the deal, Brookfield builds on significant recent activity in the Spanish hospitality market. In August of last year, the firm acquired Spanish hotel owner and operator Selenta Group for €440 mln, a deal which included four hotel assets in Barcelona (two), Marbella and Tenerife.
It is understood that Brookfield plans on converting the Princesa Plaza into a Selenta. The hotel was developed by Metrovacesa in 1976; it was sold to CPI in 2010 and bought by Colony in 2018.
Savills has been responsible for managing the hotel since 2017, including its reopening and the restructuring of the operating model. The Savills capital markets team carried out the sale.
The legal team at Baker Mckenzie, advised on the disposal.
Pérez Llorca acted as legal adviser on the buy side.
