Chinese property group Chongqing Kangde is about to close the acquisition of the Hotel Barceló Santiago in Tenerife, on the Canary Islands, from Spain's hotel Group Barceló for around €50 mln.
Chinese property group Chongqing Kangde is about to close the acquisition of the Hotel Barceló Santiago in Tenerife, on the Canary Islands, from Spain's hotel Group Barceló for around €50 mln.
The deal - Kangde's first in Europe - follows a visit by a delegation led by Kangde Chairman Lu Chaokang last year and was first announced in February 2015.
Closing is conditional upon approval by the Chinese government.
Following the sale, Barceló will continue to manage the four-star hotel, which consists of 406 rooms.
It is the latest transaction signed by the hotel Group to reduce its exposure to real estate. Earlier this year the company sold most of its resort destinations in Spain, including hotels in the Canary Islands, Andalusia and the Balearic Islands, to a new hotel REIT controlled by Hispania.
Under the agreement, which was first announced in February, Hispania will acquire a portfolio of 11 four-star hotels with a combined 3,946 rooms and one shopping centre in an initial stage. At a later stage, the Spanish REIT will have the option to acquire five additional hotels offering 2,151 rooms and a second shopping centre.
Hispania is investing €339 mln in the company in exchange for an 80.5% stake. Grupo Barceló will maintain a 19.5% interest with the option to boost this to 49% through future capital increases.
Barceló will remain the operator of the hotels through lease contracts with an initial term of 15 years.
