July 7, 2017 — Starwood Capital Group, a leading global private investment firm, today announced that its Starwood Global Opportunity Fund X controlled affiliate has sold its interest in a collection of hotels across key leisure markets in Spain. The assets are owned in a joint venture with Melia Hotels International, a leading Spanish hotel operator, which is retaining interest in the assets in the portfolio.
The portfolio sold consists of four well-established beachfront hotels representing 2,070 keys that will continue to be managed by Melia following the transaction. Terms of the transaction were not disclosed.
Included in the portfolio are the Sol Principe in Malaga, the Sol Lanzarote, the Sol House Ibiza mixed by Ibiza Rocks and Sol Palmanova in Mallorca. The hotels have been recently refurbished and repositioned alongside the re-launch of the Sol Resort brand by Melia. Starwood Global Opportunity Fund X's controlled affiliate owns 80% of the joint venture which owned the hotels, while Melia Hotels International owns the remaining 20%. The joint venture continues to seek out opportunities to acquire and integrate additional properties into the portfolio with a focus on the Mediterranean resort markets.
"We are delighted to have delivered on the business strategy established within the joint venture for these four hotels, while achieving an attractive investment return," said Keith Evans, Vice President, European Hotels at Starwood Capital Group. "The swift transformation of both the physical product, as well as the operational overhaul of the portfolio, generated a substantial increase in both EBITDA and capital value. We look forward to continuing to grow the remaining two hotels in the portfolio, while identifying new investments for the joint venture going forward."