Palace Vista Eder
Millenium, the hotel REIT, has carried out investments, both in the acquisition of new assets and in refurbishing its portfolio’s existing assets, during a complicated year for the tourism segment.
The company, owned by family Isidro Rincón (Europac) and Inditex and Novagalicia’s ex-CEO, José María Castellano, purchased an asset in Cordoba which compliments the set of assets acquired in that municipality for the joint development of a single hotel in a unique area of the city, the Jewry quarter.
It has also acquired 25 additional parking spots at the Vía Castellana hotel in Madrid; 2 retail stores on the ground floor of hotel JW Madrid and opposite the new Canalejas Four Seasons, as well as Palacio Vista Eder in San Sebastian’s Beach of la Concha. The total investment was 18.8 million euro.
To this, we have to add the investments with refurbishments which reached 25.8 million euro.
Palacio Vista Eder’s rental
The most relevant acquisition during the second half of 2020 was the Palacio Vista Eder in San Sebastián, which cost 10.5 million euro plus transaction fees. To this number, we must also add the capex needed for its refurbishment.
Following this operation, the company will refurbish the asset and transform it into a great luxury 5 star boutique hotel which, according to the forecasts, will be operational in 2022. The company assures the building will be rented to a tenant for 15 years with a variable rent of 70% over the GOP and a fixed rent of 780.000 euro.
At the end of 2020, the company had 10 assets valued at 349.5 million euro, of which three are operational and six under refurbishment or development, with a potential portfolio of 1.268 dwellings. The company has already active: Madrid’s Vía Castellana, operated by Hotusa with 23 parking spots added; Alicante’s Eurostars Lucentum (Hotusa)and Meliá Bilbao, in this case operated by Meliá.
The hotels undergoing refurbishment are: Plaza Magdalena and Plaza de San Francisco, in Seville; Gran Vía (Bilbao); JW Marriott (former hotel Asturias) in Madrid, where both buildings were acquired; the hotel formed by Palacetes de Córdoba and Vista Eder, which will be operated by MGallery (Accor), in San Sebastian. The hotel under development is La Hacienda de San Roque, in Cadiz.
The entire portfolio is expected to be operational by the end of 2022, with the exception of the La Hacienda de San Roque project, which will begin operating during the second quarter of 2023. The REIT’s modus operandi is based on constructing and delegating the leasing to Meliá and Eurostars.