Global alternative investments firm AXA IM Alts has bought the five-star Hotel Sofia in Barcelona from Selenta Group, Brookfield’s Spanish hospitality platform, on behalf of its clients.
The property was acquired in joint venture with Spanish based partner Blasson Property Investments, acting as operating partner.
Upon acquisition, AXA IM Alts plans a repositioning programme, following which the hotel will be operated by a leading global hospitality group, Hyatt International.
The 19-storey hotel, which dates back to 1974 but underwent a comprehensive renovation between 2016-2019, comprises 465 rooms as well as two bars, a restaurant, café, rooftop restaurant & bar terrace and wellness facilities including a spa, gym and both an indoor and outdoor pool. The repositioning program embarked by AXA IM Alts will aim to further enhance the hotel’s specifications, amenities and sustainability credentials.
Hotel Sofia is located in the Les Corts area of Barcelona, in the heart of the city’s central business district. Less than ten-minutes’ walk from two metro stations and just fifteen minutes from El Prat airport via public transport, the hotel offers guests quick and direct access to Barcelona’s main office neighbourhoods and tourist attractions, including the Camp Nou and the Pedralbes Palace Gardens.
Despite growing visitor numbers in Barcelona, which has emerged as one of Europe’s preeminent conference and events destination, there is a limited supply pipeline of new hotel rooms in Barcelona on account of development restrictions, while only 5% of the current stock is 5* rated, supporting demand for the Hotel Sofia.
Esther Escapa, Head of Real Estate Transactions & Development Iberia, at AXA IM Alts, commented: “With the delivery of new hotels in Barcelona constrained yet year-round demand for hospitality in the dynamic city continuing in an upward trajectory, this acquisition represents an opportunity to leverage AXA IM Alts’ market-leading asset management expertise to upgrade a high-quality asset and capitalise on favourable market demographics.”
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