UK investment fund Pygmalion and real estate asset manager CBRE IM have put the Silken Hoteles hotel chain's portfolio up for sale, seeking a total valuation of €240-250 million.
This is the largest hotel portfolio currently on the market in Spain.
The nine four-star properties, totaling 1,650 rooms, are located in Seville (Al Andalus Palace), Madrid (Puerta Madrid), Bilbao (Indautxu), San Sebastian (Amara Plaza), Santander (Coliseum and Río), Tenerife (Atlántida), Valladolid (Juan de Austria), and Ciudad Real (Alfonso X).
Purchased from construction group Urvasco in 2018, the hotels underwent renovations before the pandemic. The most valuable property, the Silken Al-Andalus Palace with 623 rooms, is estimated to be worth around €100 mln.
CBRE is advising the two partners on the sale.
Pygmalion has excluded two Italian hotels from the sale. These properties with a total of 333 rooms, part of the American chain Hilton, were acquired in Florence in 2021 through an opportunistic fund.
The Silken hotel chain, which manages the portfolio, has experienced significant growth in recent years. The company repaid its €18 mln loan early in July, thanks to a 21% increase in turnover in 2023 compared to pre-pandemic levels.
Despite a robust year for hotel transactions in 2023, with sales reaching €4.16 bn, foreign investors continue to show interest in acquiring Spanish properties. In the first half of 2024, 56 hotels were sold in Spain for a total value of €1.63 bn, marking a 3% increase compared to the same period in 2023, according to Cushman & Wakefield. Notable deals include the purchase of the Six Senses hotel in Ibiza for €200 mln and the acquisition of two five-star properties in Barcelona.
