Italy's Bulgarella Group has acquired a hotel asset in Palermo which it plans to renovate into a modern, four star property.
The former Motel Agip was acquired from the Sant'Anna Real Estate company. Currently shuttered, the property formed part of a chain of motorway motels created and operated by Italian petrolium and gas giant Agip in the 1960s. Assets in the motel chain were gradually sold off in the 1990s before the Motel Agip operating company Semi went into liquidation.
The Palermo asset compriese seven floors above ground with a total of 120 rooms. There are also offices, warehouses, technical spaces, plus a banquet hall, restaurant, bar, kitchen and three conference rooms.
The new structure, which will be ready 24 months after the start of the works, will become a 4-star hotel and will target 60,000 visitors a year, according to Bulgarella.
'As a native of Palermo, I am happy and a little excited,' said Ray Lo Faso, general manager of the Bulgarella Group.
'Our group's development model focuses on recovery and refurbishment. The ex Motel Agip operation fits perfectly with our DNA. It is a historic accommodation facility, now forgotten. We will restore it to its new splendor and it will become the city's commercial hotel of reference.'
While the transaction amounts to around €3 mln, Bulgarella said it would spend €6 mln on the repositioning of the property
In 2022, Bulgarella Group invested around €10 mln, while in 2023 the group expects to invest some €18-20 mln, including the works for the Ex Motel Agip in Palermo, the conversion works for the ex Olivetti in Sarzana and the renovation works for the Hotel Bristol in Viareggio.
The group currently owns a portfolio of 29 4* and 5* hotels distributed in five Italian regions (Sicily, Tuscany, Veneto, Emilia Romagna and Liguria) for a total of 2,450 rooms, with an asset value of approximately €400 mln.
By 2023, the number of properties is expected to rise to 30. The group also owns various other commercial, residential and tourist properties.
