Catalan businessman Jordi Mestre announced an agreement with Brookfield for the sale of the Selenta hotel chain to the Canadian firm as well as to private real estate funds managed by Brookfield Asset Management.
Biggest hotel investment transaction formalized during the year in the Spanish market
The agreement contemplates that Brookfield will take over 100% of the management group, as well as its portfolio of four hotels for an amount of 440 million euros. The assets are the Sofia Barcelona hotel, Expo Barcelona, Don Carlos Resort & Spa (Marbella) and Mare Nostrum Resort (Tenerife). In total, the establishments have more than 2,200 rooms.
"We are convinced that Brookfield is the best partner for Selenta Group to continue building on our family's legacy and providing stability and great growth opportunities for the company and its shareholders," said Mestre.
For his part, the senior vice president of Brookfield, Alberto Nin, has indicated that “Selenta Group offers us an attractive opportunity to expand our presence in Spain and enter the hospitality market, acquiring a wide and high-quality portfolio in the main destinations tourism in Spain together with a consolidated management platform ”. Nin stressed that Brookfield is one of the world's largest real estate investors and a seasoned global hotel business owner.
“Brookfield's move allows it to acquire a portfolio of quality assets in the main Spanish tourist destinations, as well as a consolidated management platform from which to develop its growth plan in Spain. The operation is postulated, for the moment, as the one with the highest volume of the year, even surpassing the purchase by Riu Hotels & Resorts of the minority stake (49%) in its joint venture with the tour operator TUI, still pending formalization. ” explained Laura Hernando, managing director of Hotels at Colliers.
The hotels will continue to operate under the ‘Selenta Group’ brand and Albert Tomàs, CEO, and Georgina Mestre, deputy to General Management and third generation of the Mestre family will continue to lead the company. In the operation, the real estate consultancy Colliers International has advised the buyer.
The Expo Valencia hotel, also owned by Selenta, has not been included in the agreement and will continue to be owned by Jordi Mestre.