120 Key, Five-Star Mandarin Oriental Barcelona For Sale €200m
Location: Paseo de Gracia, Barcelona, Spain
Name: The Mandarin Oriental Barcelona
Guide Price: €200m
No. of Keys: 120
The Opportunity: Farallon Capital Management, the US-based investment group, is reportedly looking to sell the 120-key Mandarin Oriental Barcelona for €200m (approx. US$1.95m) according to La Valira, a Spanish newspaper. Farallon acquired the property during the acquisition of a package of non-performing loans from Caixabank in March 2020. The property had been formerly owned by Reig Capital Group, the Spain-based family office of Maria Reig Moles.
Farallon, the California-based investment fund bought the debt that the Andorran group held with Caixabank, which amounted to around €450m. The Andorran group’s debt dated back to 2006, when La Caixa withdrew its stake in Crèdit Andorra and Reig executed the preferred option to purchase 17% of the bank’s shares with a loan granted by the Catalan bank itself, which had disposed of its own stake.
Years later, this large debt required a refinancing, which included in the same loan the shares of Crèdit Andorra and those of the Hotel Mandarin Oriental . This error in the financial forecast has made Farallón now the one to manage the sale of the complex and enjoy the possible capital gains from the sale.
The Farallón fund is owned by billionaire and former US presidential candidate Tom Steyer . It has a capital of €27bn and is dedicated to investment in debt and high-risk assets. In addition, it owns 1.1% of its capital in shares and contracts for difference (CFD’s) in the Spanish Stock Market and Markets, as declared to the National Securities Market Commission.
The sale of the Mandarin hotel comes at difficult times for the Spanish tourism and hotel sector which, as a consequence of the pandemic, have been forced to close or open with many limitations. According to a report by Cushman & Wakefield, the average occupancy in Spain has been around 33% in the first nine months of the year and only 37% of the hotels are currently operating.
The hotel opened in 2009 on a site that once was a Bank HQ building.
Main Photo: The roof-top bar at the Mandarin Oriental Barcelona
Tenure: Freehold
Brand/Management: Unsure…will Mandarin remain?
Current Owner: Farallon Capital Management, the US-based investment group
Agent: Again unknown…THPT investigating
Guide Price: €200m…we think
Date Posted: November 2020
THPT Comment: A great opportunity to buy this renowned five-star Mandarin in this (pre-Covid) vibrant city, with city council limits on how many new hotels can open. Thus far all we have is press reports, so facts need to be checked!
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This is a new feature on the THPT site…. Hotel & Serviced Apartment owners can be naturally reticent in publicising their property is for sale…for confidentiality reasons, for staff and current client reasons, so the properties featured in this section will either be “generic” or “name specific”
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MISREPRESENTATION ACT 1967. This information is provided as a general guide and is not intended to be constructed as a statement of fact upon which interested parties can rely. All interested parties should make their enquiries by inspection or otherwise. Neither The Hotel Property Team (trading name of Impetus Marketing 2006 Ltd) nor any person in our employment has the authority to make, give or imply any representation or warranty whatsoever relating to the premises referred to in these particulars. These details do not constitute any offer, contract or any part thereof and all negotiations relating to the premises should be conducted through THPT.