JLL advises the Doğuş Group on the €210 million agreed sale of the Villa Magna, Madrid
JLL has advised Turkish conglomerate Doğuş Group on the agreed sale of its luxury hotel Villa Magna, in the heart of Madrid, to Mexican asset manager RLH Properties
The 150 guestroom Villa Magna is one of the most luxurious hotels in Spain located on Madrid's prime commercial thoroughfare Paseo de la Castellana.
The acquisition is RLH Properties' first hotel real estate transaction in Europe.
Patrick J Saade, co-head European Transactions in JLL's Hotels & Hospitality Group, said:
"We are pleased to have represented Doğuş on this transaction, having sold the hotel to them in 2016. This off-market sale highlights a trend we are noticing across Europe, that hotels assets are attracting attention from a wider variety of investors from across the globe than ever before. More than ever, Europe represents the center of gravity for international investors."
Madrid is the economic, financial, administrative and service centre in Europe, with a large cultural and artistic heritage. It is a major leisure and business destination, hosting important meetings and international conventions, such as FITUR (International Tourism Fair) or ARCO Madrid (International Contemporary Art Fair). Hotel operating performance remains robust with occupancy and ADR growing year-on-year. Hotel supply in Madrid is constantly evolving. The interest shown by international hotel brands reflects that Madrid has become the preferred tourist destination for foreign tourism.
According to Jerónimo Bremer, President of the Executive Committee of RLH, and founding partner of BK Partners, "This operation represents an important milestone in our strategy of investing in unique real estate assets for the hotel sector. The acquisition of Hotel Villa Magna, one of the most representative of Europe in the luxury segment, also confirms our enormous confidence in the Spanish market, one of the most dynamic and attractive in the world."
As stated by Borja Escalada CEO of RLH Properties and partner of BK Partners, "The purchase of Hotel Villa Magna is the first step in our international expansion, with an emblematic luxury hotel located in the best area of Madrid. This, together with our proven experience in the management of this type of real estate assets, has great potential to create shareholder value. Therefore, we believe that this transaction is excellent news for our investors and shareholders and we hope to be able to announce new investments in Spain and Europe soon."