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.
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.
