Last updated: 11:33 / Friday, 27 February 2015
Initial Portfolio of 7 Hotels

Starwood Capital Group and Melia Hotels to Acquire Spanish Resorts Through New Joint Venture

Imagen
Starwood Capital Group and Melia Hotels to Acquire Spanish Resorts Through New Joint Venture
  • A controlled affiliate of Starwood Capital will own 80% of the joint venture company
  • The joint venture represents Starwood Capital Group's second transaction in Spain over the last several months

Starwood Capital Group and leading Spanish hotel operator Melia Hotels International announced that they have established a joint venture that has agreed to acquire a collection of hotels across key resort locations in Spain.

The initial portfolio for the joint venture consists of seven well-established beachfront hotels representing 2,933 keys that are currently owned by Melia Hotels International and will continue to be managed by Melia upon completion of the transaction. The properties will be acquired by the joint venture in a transaction valued at €176 million ($198 million), subject to the approval of the European Union Merger Control Office.

Included in the initial portfolio are the Sol Principe in Malaga, the Sol Lanzarote and Melia Gorriones (Fuerteventura) in the Canary Islands, the Sol Ibiza and Sol Pinet Playa in Ibiza, and the Sol Mirlos and Sol Tordos (Palmanova, Mallorca). The hotels will all be fully refurbished.

A controlled affiliate of Starwood Capital will own 80% of the joint venture company, while Melia Hotels International will own the remaining 20%. The joint venture plans to seek out opportunities to integrate additional properties into the portfolio.

The joint venture represents Starwood Capital Group's second transaction in Spain over the last several months. In late October, the Firm completed the acquisition, through a controlled affiliate, of a portfolio of loans from BFA-Bankia Group that included a significant number of real estate properties as underlying collateral. Starwood Capital Group has acquired more than $63 billion of real estate assets globally since its inception in 1991, including approximately 2,300 hotels and resorts.

For your information...

Starwood Capital Group is a private investment firm with a core focus on global real estate. Headquartered in Greenwich, CT, the Firm maintains 12 offices in six countries around the world. Starwood Capital Group has raised more than $31 billion of equity capital since its inception in 1991, and currently manages over $42 billion in assets. The Firm has invested in virtually every class of real estate on a global basis, opportunistically shifting geographies and changing positions in the capital stack as risk-reward dynamics evolve. For more than two decades, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises around real estate

menu
menu