Stoneweg Hospitality, the hotel investment arm of global real estate company Stoneweg, has expanded its portfolio in Spain with the acquisition of two hotels from Globalia Business Corporation, the Spanish tourism group, for €83 million.
The investments have been made through a variety of Stoneweg’s discretionary funds and increase the Company’s hospitality exposure by 25%, from 1,281 to 1,691 keys, as well as its weighting to the Balearic and Canary Islands to 62%, a region where record visitor numbers are forecasted in 2023.
La Niña is a 226-room, four-star hotel located in Costa Adeje, Tenerife, 200 metres from Playa Fañabé and Playa de la Pinta. Palace de Muro is a 184-room, five-star hotel in Muro, Mallorca, and is situated directly on Playa de Muro, considered one of the world’s best beaches. Both hotels feature multiple restaurants, bars and pools, as well as a spa and gym, as well as Meetings, Incentives, Conferences and Events (MICE) facilities.
Following the 2023 summer season, Stoneweg will undertake an extensive CapEx programme to refurbish and reposition the hotels.
Stoneweg Hospitality, which was established in 2021, currently owns a portfolio of seven prime hotels across Spain, which have been, or are in the process of being, repositioned through significant managerial turnarounds, CapEx programmes and reflagging strategies. This includes Alua Menorca, Casa Lit Barcelona or Hard Rock Hotel Marbella, which re-opened in March this year following a comprehensive refurbishment of its rooms & suites, and new common areas such as the Sun Society rooftop pool & restaurant and the show-dinner restaurant Nu Downtown.
The Spanish hospitality sector continues to recover strongly from the Covid-19 pandemic and this year it is predicted that the country will welcome a record 85 million foreign visitors, surpassing the previous highest of 83 million set in 2019. This is an increase of 17% on 2022 when 71 million foreign travellers visited Spain.
Miguel Casas, Managing Director of Stoneweg Hospitality, commented: “This was a rare opportunity to establish a footprint in two of Spain’s top performing hospitality destinations, a market where the tourism sector has enjoyed an unprecedented post-covid rebound, and add two assets that complement our existing high-quality portfolio. “While already offering strong fundamentals in their own right, in line with our existing strategy, our highly experienced team will upgrade and reposition the assets in order to generate additional returns through the creation of differentiated products from a concept and branding perspective.”
Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!