Qataris poised for discounted buy of iconic Barcelona hotel

Qatar Investment Authority is reportedly within days of signing the acquisition of the flagship Hotel Vela in Barcelona at a significant discount.

The Middle-East sovereign wealth fund is reportedly going to pay €200 mln, 23% down on the rumoured €260 mln development cost.

Located on the Barcelona waterfront, the five-star hotel was designed by architect Ricardo Bofill. The hotel is operated by W Hotels, a luxury brand of hotel chain Starwoods, and provides 473 guest rooms including 67 suites.

The property is owned by four partners with equal shares of 25% each. They are construction groups FCC and OHL, infrastructure group Comsa, and family-owned business Godia Group.

According to Spanish press reports, the sovereign wealth fund is making the purchase on behalf of its real estate arm Qatari Diar.

If successful, the purchase would be the latest made by the Qataris in the recent past. The sovereign wealth fund has already invested in the European hotel sector with the purchase and redevelopment of the Peninsula Hotel in Paris, which is due to open later this year.

Located on Avenue Kleber, the building is 80% owned by Qatar National Hotels (currently known as Katara Hospitality), Qatar's hotel owner and developer, and 20% owned by operator HSH Group.

The Qataris are also the owners of Western Europe's highest building, The Shard, designed by master architect Renzo Piano and developed by Sellar Property. The tower stands at 310 metres and includes office space, residences, restaurants and the five-star Shangri-La Hotel.

Last month, the holding of the Qatari sovereign wealth fund also bought a 40% stake in the flagship Porta Nuova mixed-use development in the city centre of Milan from Italian fund manager Hines Italia Sgr, in a deal valuing the site at €2 bn.