New 150-Key Hotel and/or Aparthotel Development Property Available For Sale in the Heart of Porto, Portugal
Location: Rua de Sá da Bandeira, Porto, Portugal – 15 minutes walk to the Dom Luís I Bridge on the Douro River
Name: Currently the Palácio do Comércio – Open to new buyer
Guide Price: €41m as is….budget to open €25-30m
Guide Price per Key: Once open …€470k
No. of Keys: The current plan is 124 hotel rooms from 30 sqm to 120 sqm room size; 15 one and two bedroom executive apartments from 65 to 90 sqm, plus 8 three and four bedroom tourist apartments from 200 to 230 sqm
The Opportunity:
The building, currently 40% residential, 18% commercial (ground floor and mezzanine) and 22% parking and storage – with the balance 20% offices, of 11,995 sqm private GCA above ground – total 15,604 sqm GCA, with a further 4,897 sqm of possible additional area, including a new construction with rooftop space on the current 7th floor and a new 8th floor.
The Palácio do Comércio is a tall and monumental building defining an entire block and incorporating a market-square to the south, which was built in the style and principles of the Chicago School, behind a great eclecticism of outstanding Art Deco and classical components.
It is also highlighted by the horizontal and tripartite marking of the façades, which is usable for commercial purposes and access, as defined and separated by an imposing flap from the multi-functional central body, topped by a parapet, architectural and demarcation modelling element from the patio.
The building system and architectural language of the Palácio do Comércio encompass two fundamental principles in terms of rehabilitation/regeneration – adaptability and flexibility.
The current owners are: our client – who own 80.5% of the freehold of the building and a minority stakeholder, with 19.5%, whereby we can proceed with the sale 100% of the SPV holding company, to allow the development as envisaged.
The planning permit allows for residential purposes, and a pre-study has been made for 124 rooms as a five-star hotel, 15 one and two bedroom apartments under the control of the hotel owner, with a further 8 three and four bed apartments to be leased to the minority stakeholder referred to above. Planning permits are available for inspection and changes can be made at this stage.
The planning consents are dated 2021 with a one+one year period from that date to pay and issue the respective construction license. This deadline will be suspended when the investor submits the necessary amendments to the approved project, as we would recommend, instead of filing for a new project.
There is a major new Bolhao Food Market due to open April 2022, virtually adjacent to the Palacio
The terms of the transaction are:
A Promissory Share Purchase Agreement – PSPA, with 10% of the agreed price to be paid
30 days from PSPA, remainder of the asking price
Escrow: 5% of of the asking price for two years. The next steps are:
NDA to receive the full documents
Site visit, LOI and PoF
Final selection of the buyer, including period of exclusivity
Due Diligence and Binding Offer
Final selection of investor and final negotiations
Signing of PSPA …to complete by July 2022
Flag & Management: Free to Buyer
Current Owner: As above
Main Photo: The envisaged look for the finished hotel
Financials: As above
Tenure: Freehold
Agent: THPT in partnership with Wall Street Luxury have been retained by the 80.5% owner
Date Posted: February 2022
THPT Comment: Porto has many fine boutique hotels, but few of the top chain-branded larger hotels. This opportunity can be a five-star top-end luxury hotel, aparthotel or a mix of the two. A very sought-after location in Porto, just 7 minutes walk from the InterContinental Hotel at Palacio Das Cardosas
Hotel & Serviced Apartment owners can be naturally reticent in publicising their property is for sale…for confidentiality reasons, for staff and current client reasons, so the properties featured in this section will either be “generic” or “name specific”
Each week we mail the opportunities posted in that period, but check-out the tab “Hotels Available” and call us for details of “Under the Table” – deals not posted on the site at all.
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market. For more information – Visit www.thpt.co.uk or email [email protected]
MISREPRESENTATION ACT 1967. This information is provided as a general guide and is not intended to be constructed as a statement of fact upon which interested parties can rely. All interested parties should make their enquiries by inspection or otherwise. Neither The Hotel Property Team (trading name of Impetus Marketing 2006 Ltd) nor any person in our employment has the authority to make, give or imply any representation or warranty whatsoever relating to the premises referred to in these particulars. These details do not constitute any offer, contract or any part thereof and all negotiations relating to the premises should be conducted through THPT.
