Spanish REIT Hispania has acquired its fourth hotel in Mallorca for €20 mln, with a plan to spend a further €10 mln on refurbishing the property.
The Fergus Tobago Hotel, which is located in front of the Son Matías beach, Palmanova, is a three star property with a total of 275 keys. The vendor was not disclosed.
The refurbishment plan includes increasing the hotel's category and expanding its services. After the hotel achieved an average occupancy of 88% in 2016, Hispania plans to commence the refurbishment after the 2018 season ends.
Fergus Hotels will continue as the hotel operator through a lease contract with a fixed component and an additional variable component, which Hispania said would provide a similar yield to the rest of its Balearics portfolio.
With this deal, Hispania raises its holdings to 11,296 rooms in 39 hotels, consolidating its position as the leading hotel owner in Spain. The REIT's overall €1 bn portfolio also includes more than 209,600 m2 in offices, and 750 homes.
