Madrid, October 20th 2015.- Hispania has announced the acquisition of the Holiday Inn hotel in Azca, Madrid CBD-, and four hotels from Dunas Hotels & Resorts -in Gran Canaria- and two office buildings- in Madrid and Barcelona.
The aggregated price paid in these transactions has amounted to 125.6 million euro, which was paid for out of company funds. In addition to this, additional funds have been committed for repositioning and improvement of these assets, with an estimated budget of 14.4 million euro. This leads to a total estimated committed investment for these acquisitions of 140 million euro.
Hotel Holiday Inn in Azca – Madrid CBD
Hispania has acquired control of the Holiday Inn Madrid hotel, located next to the Paseo de la Castellana and in front of the Bernabéu football stadium, right in Madrid central business district (CBD).
This 4* hotel has 313 keys, as well as a series of restaurants, bars, summer swimming pool and event rooms for up to 500 people and it is the only hotel within its category that can be found in the business area of Azca.
The acquisition has been made by means of the acquisition of Leading Hospitality, S.L. (“Leading”), a company currently under receivership, which is the owner of all of the common areas and of 130 keys of the Holiday Inn hotel, as well as of other assets. Moreover, Hispania has acquired -in a separate transaction- an additional lot of 39 keys from an institutional investor. The investment made by Hispania in these two acquisitions has amounted to 25 million euro. The rest of the rooms, which are owned by individuals, are subject, in their majority, to a lease contract with Leading which will expire in 2037. Hispania’s final disbursement is conditioned to the closing of the transaction, as well as to the amount of investment to be finally dedicated to the repositioning of the asset.
This transaction is one more example of Hispania’s capacity to successfully execute complex deals, by means of which Hispania gets access to unique assets, with a high potential for additional value creation through repositioning.
With this deal, Hispania reinforces its presence in Madrid with the acquisition of a unique hotel in a privileged area, which will be object of an important improvement and modernisation plan, expected to get started in the square adjacent to the hotel itself.
Dunas Hotels & Resorts
Hispania has reached a binding agreement with the shareholders of Dunas Hotels & Resorts for the acquisition of four hotels located in Maspalomas, to the south of the Gran Canaria island, totalling 1,183 keys. The hotel Dunas Don Gregory (4* – 241 keys), the hotel Dunas Suites & Villas (4* – 301 keys), the hotel Dunas Maspalomas (4* – 205 keys) and the Hotel Dunas Mirador (3* – 436 keys).
The acquisition will be carried out by means of a series of agreements which include the acquisition of the mortgage debt and the commitment of recapitalization of the company in order to reverse the current under receivership situation of Dunas Hotels & Resorts. Hispania’s total investment amounts to approximately 75 million euro and, additionally, a repositioning investment plan has been designed, amounting to more than 9 million euro. This transaction is subject to the approval of the Creditors’ Agreement.
Current shareholders of Dunas Hotels & Resorts will act as industrial partners of Hispania and will operate the aforementioned hotels by means of a variable lease contract for an initial duration of 10 years, extendable, which will include a minimum guaranteed rent.
The acquisition of these hotels complements Hispania’s resort portfolio in the Canary Islands, reinforcing its presence in the island of Gran Canaria, where Hispania already owns the Barceló Margaritas hotel.