Atalaya, a hotel investment fund led by Andbank and Navis Capital, has completed the acquisition of the Hotel Niagara, located in Palma de Mallorca, which will be operated by the Mallorcan chain THB Hotels.
The four-star, 142-room Hotel Niagara is located 200 metres from Palma beach and 2.6 kilometres from Calo de Sant Antoni beach. The nearest airport is Palma de Mallorca airport, located 6 kilometres from the establishment.
With the closing of this operation, the fund continues to strengthen its commitment to the hotel sector and now has a portfolio of three hotels and a total of almost 700 rooms. For its part, the THB chain has 3,500 rooms and almost twenty hotels.
"The acquisition of the Niagara hotel has completed our portfolio: San Fermín, Bamboo and now Niagara are three hotel assets of excellent quality, good location and with great potential for operational repositioning," said Borja Nieto, Investment Associate at Navis Capital.
With this transaction, which has been advised by Pedrosa Lagos, the fund reaches a total investment of 65 million euros, with an approximate leverage of 55%. For Beatriz Menéndez-Valdés, Investment Director at Navis, "obtaining financing in a market environment affected first by the COVID and then by the rise in interest rates has been a challenge, but BBVA, with whom we have financed for the second time, has helped us to achieve very favourable returns for our investors".
Atalaya, a hotel investment fund designed in 2019 by Andbank, THB and Navis Capital, was launched in 2020, raising close to €70 million to invest in three- and four-star holiday hotels in the Canary Islands, Balearic Islands and Costa del Sol.
"With this third transaction, we comfortably face the final stretch of the fund's investment period to select one or two additional opportunities. The objective from now on is to invest in order to optimise, together with THB Hotel, the service provided to guests and therefore the value of the fund's portfolio".
The asset is undergoing a comprehensive refurbishment of the existing apartment complex with an investment of close to 50,000 euros per room and a total of almost 10 million euros, to create a sustainable hotel with 208 rooms, two outdoor swimming pools and spacious communal areas where light, vegetation and wood will play a very important role.
