British Investment Firm, Sixth Street Acquires Five Hotels and Forms New Partnership With Pierre & Vacances in Spain
Main Photo: Roquetas de Mar, one of the five hotels acquired by Sixth Street
Date: January 2022
Name: Sixth Street and Pierre & Vacances Spain
Locations: Benidorm, Roquetas de Mar, Lloret de Mar and Salou, Spain
Number of Keys: 1,039
Seller: Oh! Tels Group, a hotel chain based in Salou, Tarragona with 16 hotels, vertically integrated and with different strategic partners, including the Olympia Group, one of the leading tour operators in coastal vacations in Spain.
Buyer: Sixth Street
Sixth Street, a global investment firm with over $60 billion in assets under management, in partnership with Pierre & Vacances Spain, the Spanish subsidiary of the European leader in holiday apartments, hotels and resorts for more than 50 years, announce the acquisition of five hotels with a total of over 1,000 rooms. This announcement is part of a new partnership between both companies for the acquisition, capital investment and operation of holiday hotels and resorts in Spain.
The agreement calls for Sixth Street to invest in the acquisition and improvement of the assets, which Pierre & Vacances Spain will help to identify and operate.
The alliance starts with the acquisition of five hotels located in Benidorm, Roquetas de Mar, Lloret de Mar and Salou, involving an approximately €85 million investment to acquire and raise the quality and services, as well as adapting them to Pierre & Vacances modern standards and best-in-class vacation hotels. As a result, Pierre & Vacances will have a portfolio of more than 5,000 accommodation units distributed across 48 complexes and hotels, representing a 16% increase in its accommodation capacity.
In the words of José María Pont, Chief Executive Officer of Pierre & Vacances Spain “despite the fact that the Covid-19 crisis is still ongoing, both companies are aware that Spain is and will be a top destination for European tourists in the coming years. This alliance is an important step towards making Pierre & Vacances one of the most important leisure tourism operators in Spain.”
The five new hotels – Pierre & Vacances Benidorm Horizon, Hotel Benidorm East**** by Pierre & Vacances, Hotel Salou Sunset *** by Pierre & Vacances, Hotel Roquetas El Palmeral*** by Pierre & Vacances and Hotel Lloret Santa Rosa**** by Pierre & Vacances – comprise a total of 1,039 rooms and are part of the Pierre & Vacances tourism development strategy on the peninsular coast. The company will now operate a total of four establishments in Benidorm, one in Lloret, two in Roquetas and three in Salou.
Colliers and Uría Menéndez served as advisors to Sixth Street on the acquisitions.
Sixth Street’s London-based European real estate team partners with property managers and institutional investors to acquire, finance, and provide servicing expertise for assets across the real estate sector. Founded in 2009, Sixth Street has more than 350 team members including over 180 investment professionals around the world.
Sixth Street acquired 15 commercial buildings from Quinta da Fonte for €150 Million in July 2021. Signal Capital sold the properties to Sixth Street in partnership with Acacia Point Capital. That sale was one of the biggest real estate deals of 2021, according to the Jornal de Negócios.
Investment in sale of hotels in Spain exceeded €2,500 million in 2021. This would equal the amount recorded in 2019, the year prior to the pandemic, according to a report prepared by the real estate consultancy Catella.
Price: €85m to acquire and invest
Price per Key: €81,809,432
THPT Comment: A welcome injection of cash to allow additional growth in 2022. A further sign of investment firms favouring the Mediterranean area of Europe
First Seen: Sixth Street press release
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