Spanish REIT Hispania has expanded its hotel portfolio by acquiring two assets on the Canary Islands for €105 mln.
Spanish REIT Hispania has expanded its hotel portfolio by acquiring two assets on the Canary Islands for €105 mln.
The properties are Gran Hotel Atlantis Bahía Real on Fuerteventura and the Suite Hotel Atlantis Fuerteventura Resort.
The 242-room Gran Hotel Atlantis Bahía Real is a 5-star hotel located in Corralejo, in the north of Fuerteventura Island. Hispania said the property falls within the trophy asset category, along with the Hotel Guadalmina Golf in Marbella, also in its portfolio.
The Suite Hotel Atlantis Fuerteventura Resort is a 4-star hotel with 383 keys, also located in Corralejo, Fuerteventura.
The two acquisitions are part of Hispania's strategy, which is being developed along with Grupo Barceló, to invest in vacation hotels, and strengthens Hispania's presence on the Canary Islands.
The €105 mln investment volume implies a 10.5x multiple on the assets' gross operating profit over the 12 months to March 2015. The gross yield on the investment stands at 8.5%, while the net yield comes to 8%.
Hispania paid for the hotels from its own resources.
Grupo Atlantis will continue as the operator of both hotels under a rental contract with a variable component which includes a minimum guaranteed fix rent.