Santander Asset Management has sold the Vila Sol tourist complex in Vilamoura, Algarve, to the Pestana Group for around 43 million euros.
The deal was announced this Thursday by consultants JLL, CBRE and Worx, who advised Santander Asset Management on the operation. The Pestana Group already managed this hotel and its golf courses, and is now the owner.
Pestana Vila Sol includes a 5-star hotel with 189 rooms and a wide range of amenities, two 18-hole and 9-hole golf courses and land for development (expansion or new property development), with a gross construction area of 7,770 square metres.
"The acquisition of the Pestana Vila Sol development is the culmination of a process that began a dozen years ago, when the Pestana Group took over the management of this hotel and the adjacent golf course," says Pedro Lopes, Director of the Algarve Region of the Pestana Group. "Initially, we were able to recover the profitability of these units and then we stepped up our commitment, taking on the risk as tenants with a fixed market rent. With the purchase of this development, we demonstrate and emphasise what has been our commitment to this project and to tourism in the Algarve from the outset," he says.
Luís Figueiredo, Director of Santander Asset Management, recalls that "the hotel sector proved to be very resilient in the post-pandemic period, with Portugal continuing to be one of the favoured tourist destinations, particularly the Algarve region. We have always believed in the value of the Vila Sol 'complex', due to its potential, location, complementarity with the golf courses, thus removing the seasonality of the hotel's operation and also because it is operated by the prestigious Pestana Group, making it an attractive asset with strong interest from investors."
"This sale represents a significant milestone in the Vilamoura property market, highlighting the potential for continued investment in the region. The Pestana Vila Sol is a benchmark for tourism and golf in the Algarve, and we are pleased and proud to have participated in this transaction," comments Karina Simões, Head of Hotel Advisory at JLL.
Duarte Morais Santos, Head of Hotel at CBRE Portugal, adds that "this is yet another deal that confirms the growing dynamism of the hotel market in the south of the country, attractive to both international and national investors. The Pestana Vila Sol is a unique and benchmark asset in the Algarve and we were proud to be involved in this transaction. We believe strongly in the growing potential of the Algarve region, which with a quality product will have what it takes to grow and attract new investors in the future."
For his part, Francisco Caldeira, from Worx, recalls that "the hotel sector has gained increasing prominence in 2023, representing 40 per cent of the total investment volume in the first half of the year. Portugal's continued importance on the international investment map is notable, as is the weight of tourism in the country." The Algarve, with Vilamoura in particular, "has shown its constant evolution and development, becoming attractive in the context of world tourism. This operation emphasises the strategic importance of the region, both for operators and for national and international investors".
He added that "it is important to highlight the work carried out by the three consultants, who in close collaboration with Santander, as a client, realised a successful and landmark transaction in 2023, of which everyone can be proud".