Main Photo: The Hotel Senator Cadiz
Date: December 2019
Location: Cadiz, Spain
Name: The Hotel Senator Cadiz
No. of Keys: 91
Seller: Senator Hotels & Resorts founder José María Rossell Recasens. Senator was founded almost 53 years ago and operates in more than 10 Spanish cities and in the Caribbean (Dominican Republic and Cancun).
His hotels benefit from a high returning customer ratio, which continues increasing to this day. Senator Hotels & Resorts has operated 35 hotels in Spain (6,742 rooms), 2 hotels in the Dominican Republic (1,565 rooms), and a hotel in Mexico (1,043 rooms). It’s yearly results reached €139m in 2018.
Buyer: Madrid-based publicly traded real estate investment trust Atom Hoteles Socimi has acquired the 91-room Hotel Senator Cadiz in Spain, for €15 million from Senator Hotels & Resorts founder José María Rossell Recasens. The hotel, which is located in the historic centre of Cadiz, will continue to be managed by Senator Hotels under a long-term lease agreement.
In acquiring this hotel, Atom Hoteles reinforces the positioning of its portfolio in urban assets, with 11 urban hotels and 12 resorts.
The establishment is located in a singular building, a “casa-palacio”, in the historic centre of the city. The hotel operator will undertake a refurbishment project in line with its strategy planning.
The lease agreed upon entails an initial duration of 10 years of ensured performance, followed by potential extensions for the tenant, reaching a maximum duration of 20 years.
Atom Hoteles is an alternative investment vehicle specialised in the hotel sector, which was created by Bankinter in January 2018 alongside the real estate asset manager GMA HCI.
Following two capital increases, the REIT has attracted over 700 shareholders to this day. The fund focuses on four and five-star hotels, urban properties and resorts, in prime locations, all leased to first-tier national operators and independent internationals hoteliers. Following this latest acquisition, the Atom Hoteles portfolio is comprised of 23 assets, 5,600 rooms, resulting in a portfolio value of €550m.
Price per Key: €165,000
THPT Comment: Strong growth for both Atom and Senator.
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