Spain's Emin Capital has acquired a historic Mallora hotel on a 12,000 ha rustic estate for €165 mln from Spanish hotel firm Grupo Barceló.

Mallorca Formentor

Mallorca Formentor

The five star property, known as Hotel Formentor, currently has 127 rooms but Emin plans to redevelop the property into a Four Seasons hotel with around 100 keys.

Barceló, which acquired the hotel and estate in 2006 for €36 mln, has been managing the hotel under the Royal Hideaway brand. The hotel is flanked by a 1,200 m2 farm, vineyard and hunting area.

The deal was struck after the Pollensa municipality gave the asset's redevelopment the green light.

Emin obtained a bank loan of around €80 mln from BBVA, Santander and Sabadell, according to newspaper El Periódico, to finance the deal. The refurbishment is expected to cost around €20 mln.

The redevelopment of the sea-front property is expected to start this year, with completion in 2023. The hotel will be the third Four Seasons property in Spain. The Canadian group's other hotels include a property in Madrid plus another development scheme in Marbella.