Azora, the Madrid-based European real estate investment manager, has made progress on the buy-side for its European Hotel and Lodging Fund via the purchase of Praia d’El Rey Resort in Óbidos, PortugaL, from Oxy Capital and Fondo Aquarius. The investor kept the deal value under wraps.
The resort boasts a 177-room 5-star hotel commercially known as Marriott Praia d’El Rey, two of the top-10 golf courses in Portugal - the Praia del Rey and West Cliffs Golf Courses, which are both 18-hole golf courses - and the operation of around 90 apartments and two F&B outlets managed under lease agreements.
The hotel, which will continue to be operated by Blue & Green under the Marriott brand, is located in several hectares facing the Atlantic Ocean, with direct access to the beach and surrounded by the Praia d’El Rey golf course.
Azora has managed to boost its presence in the Portuguese market to seven assets as a result of the deal. It already owns Vilalara, Tivoli Vilamoura, Tivoli Carvoeiro, and Tivoli Alvor in the Algarve region; The Lodge Hotel in Porto; and the future opening of Hotel das Luzes in Lisbon, and two golf courses with 36 holes.
In the whole of Europe, the company has over €3 bn invested in the hospitality sector.
Azora launched Azora European Hotel & Lodging in 2021 with €815 mln in capital. Since then, the fund has invested into the vacation hotel segment in major European destinations with a value-add strategy based on asset transformation and active management of hotel operations. More recently, the fund has also begun to utilise an alternative hotel strategy for urban tourism aimed at travellers of all ages, through which Azora aims to revolutionize city tourism.
Concha Osácar, one of Azora’s founding partners, said: 'This transaction reflects our strong conviction in the hospitality sector across the Mediterranean and Southern Europe. Consolidating our presence in Portugal with a hotel and golf resort of this quality is a key milestone for the Fund, as we continue to expand our footprint in high-potential markets. We strongly believe in the Portuguese market and its enduring appeal and strong market dynamics, not only for attracting European visitors, but also for catering to the growing US tourist base.'
