ASG sells the Hard Rock Hotel Madrid to Arlaes Management for €65M

ASG sells the Hard Rock Hotel Madrid to Arlaes Management for €65M

Arlaes Management has acquired the Hard Rock Hotel Madrid from a fund supervised by ActivumSG (ASG), in a closed transaction for 65 million euros.

Located at number 17 of the Ronda de Atocha, in front of the Reina Sofía National Art Center Museum, the transactioned establishment has 12,598 sqm and more than 160 rooms, distributed over 11 floors. The property also has 1,000 sqm of private gardens with a swimming pool, a fitness center, a roof terrace with views of the capital and 58 underground parking spaces.

The fund ActivumSG Iberia Fund I, managed by ASG, acquired the property, which was then intended for municipal offices, after seeing its potential to be converted into a hotel, due to its proximity to the main tourist spots, the business center and the commercial area of the city. And, after obtaining the relevant urban permits to carry out the change of activity and buy an adjacent plot to expand the future hotel facilities, the property reopened its doors to the public last July, already under the management of Hard Rock International, and with a theme centered on the Madrid scene, to highlight the spirit that this movement had in the capital between 1975 and 1985.

The transaction, which has been completed on a turnkey basis and is subject to a 20-year hotel management agreement with Hard Rock International, has been advised by JLL and Latham & Watkins, on behalf of the seller, and Knight Frank, on behalf of the buyer. .

"We firmly believe in Spain and its growth potential. It is a reference market for us and we are very happy to make our first investment in hospitality in Madrid. We believe that the city is the new and undisputed gastronomic capital of Europe, and that it is reaching its well-deserved place among the best cities to visit and live in. The acquisition of the Hard Rock Hotel Madrid is one more and very significant step in our growth strategy in Europe and Spain, which improves our position in this country and fits perfectly into our portfolio of hotels", explained Ilkim Schuster, Vice President of Asset Management at Arlaes Management.

The investment and management company made up of international investors maintains a diversification strategy and has recently acquired various photovoltaic assets in our country. The firm also aims to invest in the hospitality and food and beverage business in Spain and Europe, a strategy in which this operation fits.

As for ActivumSG, the manager controls, operates or is building through its funds a total of 22 hotels in Europe, totaling 4,000 rooms. A figure that exceeds 7,750 beds if we consider the openings planned by Odyssey Hotel Group, which it acquired last year, for the coming years.

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