Royal Hideaway Formentor Hotel | Photo: Booking
This operation was mentioned this Thursday during the presentation of Colliers International at the Spanish Hotel Market Investment, as one of the most relevant to be concluded in 2020.
In order to finance this operation, Emin Capital secured a bank loan of around 80 million euro from BBVA, Santander and Sabadell, according to newspaper El Periódico.
The transaction, which had already been signed in November 2019, was carried out through the acquisition of Inmobiliaria Formentor, owner and manager of the hotel, which is part of a 12.000 hectares rustic farm. The transaction was approved after the Pollensa municipality green-lighted the project to refurbish the asset estimated at 20 million euro.
The 5-star hotel Royal Hideaway Formentor currently has 127 rooms, but its refurbishment plan includes a reduction of the offer to 100 rooms (200 beds) all with a view to the sea. The unit is expected to reopen in 2023 and it will be managed by chain Four Seasons. This should be Four Seasons’ third project in Spain, the first is the already operational luxury hotel at Centro Canalejas Madrid. The Canadian chain’s other project should open in Marbella according to the same newspaper.
Hotel Formentor was one of 10 units Grupo Barceló managed under the brand Royal Hideaway. The Spanish group currently has a total of 145 hotels spread across Europe (95 units), South America (38) and Asia (12). Of these 72, are located in Spain and 5 in Portugal.
Fund Emin Capital, headquartered in Andorra and led by Jordi Ignasi Badia Llorens follows its investment route using its third vehicle and it has more than 15 investors: 70% of which are institutional investors (such as pension funds) and 30% family offices.