Azora fund picks up major Algarve resort

Azora, a Madrid-based European real estate investment manager, has completed the acquisition of the Pestana Blue Alvor, a five-star hotel in Portugal’s Algarve region, on behalf of the Azora European Hotel & Lodging (Azora EH&L), from Pestana Hotel Group, a Portuguese hospitality group.

Constructed in 2019 by the Pestana Hotel Group, the 120,000 m2 five-star resort comprises nearly 500 rooms alongside six restaurants and bars, six indoor and outdoor swimming pools and a modern sports centre and spa. The hotel is located in Alvor, on the South Coast of Portugal’s Algarve, offering excellent access to a number of beaches. The all-inclusive resort, which is nearly fully booked for the summer, will continue to be operated by the Pestana Hotel Group.

This transaction represents Azora’s fourth acquisition in Portugal and follows the recent acquisitions of the 384-bed Tivoli Marina Vilamoura resort, the 248-bed Tivoli Carvoeiro resort and the 118-bed Vilalara Thalassa Resort, all of which are five star resorts located in the attractive Algarve region.
Following this acquisition, Azora EH&L has deployed more than €1.0 bn and is close to 60% committed across 8 transactions and 29 assets with close to 8,000 hotel keys.  The Fund was launched in July 2020 with a seed portfolio of 10 resort hotel assets and four urban hotel assets across Europe and held an oversubscribed €815 mln final close in September of last year, which gave the Fund an implied total investment capacity of more than €1.8 bn.

Concha Osácar, one of Azora’s Founding Partners, commented: ‘We retain our strong conviction on the European hotels and leisure sector, with significant pent-up demand following long periods of lockdowns and restrictions, particularly in the sun and beach markets. This transaction represents a unique opportunity both to acquire an exceptional resort in a highly appealing location, and to further grow our presence in the Algarve, a region which is already performing close to pre-covid levels thanks to its long-term attractive fundamentals. To have deployed close to 60% of the Fund’s capital so soon after its final close is testament to our team’s expertise and access to unique deal flow across Europe.’

José Theotónio, Chief Executive Officer of the Pestana Hotel Group, added: ‘The Pestana Blue Alvor is key reference among families and all those who seek a distinctive all-inclusive resort in a region that is recognized as a prime beach destination in the Iberian Peninsula. The Pestana Hotel Group will professionally maintain running all operations in this unique resort.’

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