Round Hill Capital, a leading integrated global specialist real estate investor, developer and manager has announced the acquisition of an iconic existing 400 bedroom hotel in the heart of Madrid, set to become one of the three largest assets with hotel use in the city centre once refurbished.
The investment is a key transaction in the city and highlights Round Hill Capital’s continued commitment to the Spanish accommodation sector, it also follows the firm’s recent announcement of a 63 million investment in two PBSA residencies in Madrid and Seville - together adding 593 new beds to its portfolio.
The 24,000 sqm vacant, freehold former hotel is located in prime central Madrid, with a projected total investment over 120 million euros. The building will be refurbished to create a flagship aparthotel scheme specifically designed to provide flexible accommodation with a focus on students and young people. To be developed by Ruesma and designed by Morph Estudio, the space will include F&B spaces, a gym, co-working space, and an interior garden.
The asset is located in front of Principe Pio train station and shopping centre and is walking distance from hotspots such as the Plaza de España, Templo de Debod and the Royal Palace of Madrid. Well-served by public transport it is just 3 metro stops to Ciudad Universitaria, the largest student hub in Spain, direct access to bus stop and is close to a public bike station. Once completed, the residence will allow tenants to choose between rooms with views looking into Madrid city centre and rooms facing the Madrid Rio park.
Brian Welsh, Head of Student at Round Hill Capital, added: “As we expand our portfolio with CPP Investments in Europe, this €120m investment adds a significant asset in Madrid’s city centre, reinforcing our leading role in the accommodation market across the continent. With the support of our integrated on-the-ground Iberian team, we are confident we will be able to identify even more opportunities across the region in the months and years ahead.”
Oscar Bernaldo de Quiros, Head of Southern Europe Investment at Round Hill Capital, commented: “We are pleased to announce what we believe will become a flagship asset for Madrid, updating the existing asset to the latest regulatory, social and environmental standards – including the installation of photovoltaic panels and obtention of BREEAM certification. We are now starting conversations with several F&B operators to ensure both the ground floor and the re-conceived rooftop become one of the spaces of reference in the area both from a social and a cultural perspective.”
The hotel in Madrid transaction was advised by Ashurst, Jose Antonio de la Torre and Gleeds on the buy side, with Mundhotel, Garrigues and JM Rodriguez Prada on the sell side.