Spanish REIT Hispania has signed a purchase option to acquire a portfolio of seven Alua Hotels & Resorst hotels from European private equity firm Alchemy for €165 mln.
The transaction is expected to be completed by the end of February 2018.
The portfolio comprises more than 1,700 rooms distributed in seven hotels in the Balearic Islands (AluaSoul Palma, AluaSoul Mallorca Resort, AluaSoul Alcudia Bay, AluaSoul Ibiza and AluaSun Torrenova) and the Canary Islands (Ambar Beach, in Fuerteventura and Parque San Antonio, in Tenerife).
Alua Hotels & Resorts will remain as the operator of the hotels through a lease agreement with a fixed and a variable component.
As part of the transaction Hispania expects to invest close to €20 mln in refurbishing four assets, as the remaining three were subject to a complete repositioning during 2016 and 2017.
With this transaction Hispania increases its presence in the Balearic Islands, strengthening its position in the Island of Mallorca. The deal also allows Hispania to diversify the management of its hotels with a new operator.
After completing the acquisition Hispania will have a total of 12,938 rooms across 45 hotels, consolidating as the largest hotel owner in Spain.
'Hispania demonstrates once more its execution capabilities with this transaction which allows a geographical and operators diversification while reinforcing its leadership in the resort market,' said Concha Ósacar, board member of Hispania.
Alua has a total of 15 hotels with close to 3,200 rooms in the Balearic and Canary Islands.
