Tikehau Capital will allocate between €300 and €350 million to a new hotel platform focused on mid-range properties in Spain and Portugal. The initiative will be developed through Selecto, a vehicle created in partnership with Quest Capital, which will act as an operating partner, according to Hosteltur.
The platform is launching with a committed investment of over €150 million and an initial portfolio comprising four projects in Madrid, Málaga and L’Hospitalet de Llobregat. Next, the platform plans to expand into other cities across the Iberian Peninsula, including Lisbon and Porto, as well as Valencia, Seville and Bilbao. The properties will operate under the Holiday Inn Express brand, following a franchise agreement with IHG Hotels & Resorts.
Selecto will focus on the select-service segment, which comprises mid-range city hotels with less service-intensive operations than other hotel formats. The strategy combines the development of new assets with the repositioning of existing properties.
“Iberia has established itself as one of the world’s most dynamic tourism markets, with sustained demand for both city breaks and business travel. The launch of Selecto reflects our conviction regarding the potential of the select-service segment in Iberia. It is an efficient and resilient hotel model, with solid structural demand, which offers a clear opportunity to develop modern assets managed to international standards”, said Emilio Velasco, Head of Real Assets Iberia and Global Co-Head of Real Estate Acquisitions at Tikehau Capital.
The transaction is being channelled through Tikehau Capital’s second value-add property vehicle, classified as an Article 9 fund under European sustainable finance regulations.
Maslow Capital is acting as the senior lender for the financing of the first portfolio. One of the projects, located in MadBit, Madrid, is already under construction, with ALDARA Construcciones e Infraestructuras as the contractor and Ayesa as the project manager.
