Spanish hotel group Meliá Hotels International has announced a new partnership with Banco Santander on a portfolio of three European hotels.
Under the deal, which involves the Me London hotel in Londong, Gran Meliá Palacio de Isora on the Canary island of Tenerife and Meliá Cala Galdana on the Balearic island of Menorca, Banco Santander's Moon GC&P Investments S.L.U. investment vehicle will buy a minority share in the portfolio of three assets, which is currently owned and operated by Melia.
The transaction will take the form of a capital increase with Banco Santander taking a minority stake in the share capital of a subsidiary of the Meliá Group, through the creation of new type B shares, of a preferential nature. It is expected to close on April 11.
Banco Santander will be paying €300 mln for its minority interest in the assets.
Ángel Luis Rodríguez, CFO of Meliá Hotels International, said that 'the operation is part of Meliá's strategic objectives, in order to maintain the strength of its balance sheet. 'The fact that it is supported by a partner with the prestige and leadership of Banco Santander is a guarantee and a magnificent sign of trust,' he added.
Ignacio Dominguez – Adame, head of Santander Corporate & Investment Banking Europe added 'The tourism sector is experiencing a moment of strong recovery with very good future prospects after the crisis caused by the pandemic. Banco Santander wants to be present in this phase, supporting and accompanying companies with innovative solutions that allow this recovery to be consolidated.'
