Barcelona Apolo Hotel, also for sale for €90m
The establishment managed by Meliá joins the wave of operations in the sector
BarcelonaThe arrival of capital in search of hotels in Barcelona does not stop. The restrictions of the pandemic have placed many establishments in a desperate situation and this is being taken advantage of by funds to hunt for assets at low prices. The latest establishment looking to sell is the Barcelona Apollo Hotel, operated by Meliá on Avinguda Paral·lel.
According to sources familiar with the operation, the establishment is in the process of sale and its owner, the US fund Värde Partners, very active in the hotel sector, is asking for an amount close to 90 million euros. The first round of offers ends next Tuesday and the most interested buyers will be able to present their binding offers in March.
The four-star establishment is operated by the Mallorcan chain Meliá and has 314 rooms. Although it was forced to close in March 2020 with the outbreak of the pandemic, it reopened its doors on 30 August and has since continued to welcome guests until now, despite increased restrictions to cope with covid in recent months.
The hospitality sector's situation is grave due to the abrupt fall in international tourism (which is close to 80%) and because now hotel occupancy does not exceed 15%. This has meant that in recent months the market for the sale and purchase of assets has been very lively. This Wednesday it has been known that the German group Freo plans to invest €400m euros in real estate assets and hotels in the next two years in Spain. The fund manager Mazabi also announced the purchase of a hotel in Menorca and the sale of another in Ibiza.
The Mandarin and the Juan Carlos I
This situation is widespread. As ARA published this Wednesday, two emblematic five-star hotels in Barcelona, the Mandarin and the Juan Carlos I, are now on the market. Reig Capital has reiterated that the Mandarin is not for sale; different intermediaries and investors insist that the establishment is on the market. As for the Juan Carlos I, the operation is made more difficult by its high debt - about €80m -, the fact that it is located on land owned by the city council and a power struggle within Barcelona Projects, the Saudi company that owns the hotel.