Starwood Capital Group has sold its stake in four beachfront hotels in Spain. The properties were owned in a joint venture with Melia Hotels International. No financial terms were disclosed. Included in the sale were the Sol Principe in Malaga and Sol Palmanova in Mallorca.
MIAMI, July 5, 2017 /PRNewswire/ — Starwood Capital Group, a leading global private investment firm, today announced that its Starwood Global Opportunity Fund X controlled affiliate has sold its interest in a collection of hotels across key leisure markets in Spain. The assets are owned in a joint venture with Melia Hotels International, a leading Spanish hotel operator, which is retaining interest in the assets in the portfolio.
The portfolio sold consists of four well-established beachfront hotels representing 2,070 keys that will continue to be managed by Melia following the transaction. Terms of the transaction were not disclosed.
Included in the portfolio are the Sol Principe in Malaga, the Sol Lanzarote, the Sol House Ibiza mixed by Ibiza Rocks and Sol Palmanova in Mallorca. The hotels have been recently refurbished and repositioned alongside the re-launch of the Sol Resort brand by Melia. Starwood Global Opportunity Fund X’s controlled affiliate owns 80% of the joint venture which owned the hotels, while Melia Hotels International owns the remaining 20%. The joint venture continues to seek out opportunities to acquire and integrate additional properties into the portfolio with a focus on the Mediterranean resort markets.
“We are delighted to have delivered on the business strategy established within the joint venture for these four hotels, while achieving an attractive investment return,” said Keith Evans, Vice President, European Hotels at Starwood Capital Group. “The swift transformation of both the physical product, as well as the operational overhaul of the portfolio, generated a substantial increase in both EBITDA and capital value. We look forward to continuing to grow the remaining two hotels in the portfolio, while identifying new investments for the joint venture going forward.”
About Starwood Capital Group
Starwood Capital Group is a private alternative investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 10 offices in four countries around the world, and currently have more than 2,200 employees. Starwood Capital Group has raised over $41 billion of equity capital since its inception in 1991, and currently manages more than $55 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 26 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.