Spanish fund manager Azora has joined forces with Palladium Hotel Group to launch a new company that will invest up to €500 mln in the European resort hotel market.
The joint venture, in which Azora owns 75% and Palladium the remaining 25%, has kicked off with the acquisition of three hotels owned by Palladium for €115 mln. The JV has pledged an additional capex investment of €110 mln, creating a total initial investment of €225 mln.
The transaction includes the five star deluxe Bless Hotel Ibiza with 151 keys; the three star Fiesta Hotel Tanit, also in Ibiza, with 440 keys; plus the Fiesta Sicilia Resort with a total of 529 keys, a four star property located in Cefalú, Sicily.
The joint venture’s strategy includes the refurbishment of the Fiesta Hotel Tanit and Fiesta Sicilia Resort, the latter of which will become a five-star property.
Together, Azora and Palladium plan to invest up to €500 mln in total, with a particular focus on the five star (deluxe) properties managed by Palladium.
The transaction is in line with the new investment fund currently being raised by Azora to invest in resort hotels in the Mediterranean and hotels and hostels across Europe's main tourism destinations, the firm said.
'The creation of this alliance falls within out firm decision of investing in the resort hotel segment, with a strategy to transform assets with unique locations,' said Concha Osácar, founding partner of Azora.
'For Palladium Hotel Group, this joint venture confirms its bet on a sustainable growth of its five star brand exposure worldwide as well as boosting the company as hotel operator under management contracts,' added Abel Matutes Pratsm CEO of Palladium Hotel Group.
Alantra advised Palladium on financial matters.