GROUP OR HOTEL BUYOUT: MELIÁ HOTELS INTERNATIONAL COMPLETES THE SALE OF HOTELS TO A COMPANY OWNED BY BANKINTER AND SOME OF ITS HIGH-NET-WORTH CLIENTS AND INSTITUTIONAL INVESTORS (Spain)
The operation includes 6 hotels owned by Meliá and its participation in a company that owns another 2 hotels, all of which will continue to be operated by Meliá Hotels International, which will also hold a stake of 7.5% in the new company and will generate capital gains of approximately €62Mn. |
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GROUP OR HOTEL BUYOUT: MELIÁ HOTELS INTERNATIONAL COMPLETES THE SALE OF HOTELS TO A COMPANY OWNED BY BANKINTER AND SOME OF ITS HIGH-NET-WORTH CLIENTS AND INSTITUTIONAL INVESTORS (Spain)
The operation includes 6 hotels owned by Meliá and its participation in a company that owns another 2 hotels, all of which will continue to be operated by Meliá Hotels International, which will also hold a stake of 7.5% in the new company and will generate capital gains of approximately €62Mn. |
Category: Europe - Spain - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2021-07-15
The value of the company is over €200 Mn., and consists of eight premium assets with excellent locations and high potential, supported by a plan to repositioning the properties involving an investment of more than €125 Mn.
MHI thus fulfils its commitment to dispose of certain assets to increase its liquidity after the crisis caused by Covid-19, also allowing the immediate transformation of these assets which otherwise would have had to have been postponed.
Bankinter Investment, the Bankinter Investment Banking arm, reinforces its position as a leading player in alternative investments in Spain with the launch of a new investment vehicle for its clients.
Meliá Hoteles International (MHI) and Bankinter Investment, the Bankinter investment banking arm, signed an agreement today for the sale by MHI of a 92.5% stake in a company that owns eight hotels, participated by the bank and a small number of its high-net-worth clients and institutional investors.
The company will be renamed Victoria Hotels & Resorts, S.L. and will be participated by Bankinter and MHI, with 7.5% stake, respectively.
The hotels included in the company are: Gran Meliá Victoria (Mallorca), Meliá Tamarindos (Gran Canaria), Meliá Granada, Sol Beach House Menorca, Meliá Salinas (Lanzarote), Innside Bosque (Mallorca), Meliá Atlanterra (Cadiz) and Innside Zaragoza. All of them have an excellent location and major possibilities of revaluation after the repositioning activities foreseen in the sales agreement.
Except for the Innside Bosque and Innside Zaragoza, whose renovations have been recently completed, all the other hotels will now undergo major renovations to take full advantage of the recovery of tourism that is expected to coincide with their completion. Bankinter Investment is coordinating the financing of the hotel renovation projects, with an expected capex investment of more than €125 Mn.
GMA also joins the operation as a managing partner and shareholder of the company.
The transaction forms part of Meliá's asset rotation strategy and will assist the Group in improving its liquidity.
MHI will retain the management of all of the hotels through long-term management agreements. High-quality assets, a management company with international prestige and significant credit are the key attractions for investors, at a time when the rebound in travel demand caused by the vaccines and other measures have demonstrated the resilience of the industry.
After completing this innovative transaction, Bankinter consolidates its position as a significant player in alternative investments in Spain. Over the last five years, Bankinter Investment has successfully launched 16 alternative investment vehicles with capital of more than 3,000 million euros. It has a portfolio of assets under management of more than 5,000 million euros, including project financing.
Bankinter has followed a model it has already used in previous alternative investment vehicles, setting up a company in which clients of the bank's private banking arm and institutional investors can co-invest.
Given the commitment of Meliá Hotels International, Bankinter and GMA to sustainability, the renovation projects will include investments to decarbonise activities and will also benefit from access to Spanish and European funds to assist in the process.
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