The Socimi Millenium Hotels Real Estate closed the first half of this year with a net profit of 1.2 million euros, leaving behind losses of almost 12 million in the same period of 2020. This allows the company to prepare the jump from BME Growth to the continuous market to improve shareholder liquidity and boost its price.
In addition, the Socimi, specialized in the five-star hotel segment, also expects to consolidate the current portfolio of assets and increase income to begin distributing dividends, in addition to achieving significant increases in the valuation of these assets.
Millenium currently has a portfolio of ten assets (four in operation, five in reconversion and one under development) with a combined valuation of almost 374 million, 7% more than at the end of 2020, according to the latest appraisal carried out by the firms CBRE and Savills Aguirre Newman.
The Socimi has the objective of ending the majority of these assets in operation by 2022, in addition to acquiring new properties that allow the value of its portfolio to be raised to 1,000 million.
In order to carry out its plans, Millenium approved last July a capital increase of up to 250 million, divided into two tranches that allowed the entrance to the US investment fund Castlelake, becoming in the maximum shareholder of the company with 42.5% of the share capital.
Millennium's revenues in the first half of the year fell by 7.2% compared to 2020 to 3.7 million, weighed down by the negative result of the golf courses as a consequence of the health and economic crisis.