Mexican asset manager RLH Properties has purchased Villa Magna, a luxury hotel in Madrid, from Turkish conglomerate Dogus Group for €210 mln.
The acquisition is RLH Properties’ first hotel real estate transaction in Europe. The 150 guestroom property is located on Madrid’s central commercial thoroughfare, Paseo de la Castellana.
'This operation represents an important milestone in our strategy of investing in unique real estate assets for the hotel sector,' said Jerónimo Bremer, president of the executive committee of RLH, and founding partner of BK Partners.
'The acquisition of Hotel Villa Magna, one of the most representative of Europe in the luxury segment, also confirms our enormous confidence in the Spanish market, one of the most dynamic and attractive in the world.'
JLL advised Dogus Group.
'We are pleased to have represented Dogus on this transaction, having sold the hotel to them in 2016,' said Patrick J Saade, co-head European transactions in JLL’s hotels & hospitality group.
Dogus bought the property for a reported €180 mln from Portugal's Queiroz Pereira family through its Sodim holding company.
'This off-market sale highlights a trend we are noticing across Europe, that hotels assets are attracting attention from a wider variety of investors from across the globe than ever before. More than ever, Europe represents the center of gravity for international investors.'
According to JLL, hotel operating performance remains robust in the city with occupancy and ADR growing year-on-year, while hotel supply in Madrid is constantly evolving.
'The purchase of Hotel Villa Magna is the first step in our international expansion, with an emblematic luxury hotel located in the best area of Madrid,' concluded Borja Escalada, CEO of RLH Properties and partner of BK Partners.