Banco Santander Puts Up For Sale Portofilio of 7 Hotels On The Spanish Coast
Locations: Spanish coast and islands including, Fuerteventura
Names:
Guide Price: Between €50m and €60m
Guide Price per Key: €125k
No. of Keys: 450
The Opportunity:
Banco Santander brings to the market a portfolio of adjudicated hotels, whose jewel is the old Jandia Golf hotel in Fuerteventura.
It is a portfolio of establishments located on the coast and come from adjudicate processes for non-payment.
The entity chaired by Ana Botín has put 7 hotels on the market, distributed in different locations on the Spanish coast and islands. In total, these seven vacation establishments add up to 450 rooms.
The bank took over them after the financial problems of their until then owners. Within the portfolio, one hotel stands out above the rest, according to industry sources: the former Jandía Golf Resort hotel, located in the town of Morro Jable, in Fuerteventura. It is a four-star establishment, with facilities that include swimming pools, a golf course and a gym.
For the seven hotels, Santander hopes to achieve between 50 million and 60 million euros, taking advantage of the recovery of the tourism market in Spain after the impact of the pandemic.
According to data from Christie & Co, 130 hotel establishments were transacted last year , totaling 22,523 rooms. This type of purchase and sale includes the acquisition of both existing assets and future projects and reconversions.
The urban segment accounted for 53% of these operations, especially the cities of Madrid and Barcelona, while for vacations, the Canary Islands is the most outstanding archipelago in this type of hotel.
42% of investors have been of national origin, compared to 27% in 2020, recovering part of the investment field. Hotel groups have increased their investment volume by 33% and Socimis by 150%, compared to the previous year.
The average price per room transacted stood at 147,000 euros, 17% more than previous year.
In total, hotel investment reached 3,180 million euros last year, 233% more than in 2010. This figure includes the acquisition of existing hotels, buildings for conversion to hotel use and land for hotel developments, according to the consulting firm colliers real estate
By type of asset, existing hotel sales recorded 3,002 million euros in 2021, 249% more than the previous year, in total, 127 hotels. On the other hand, real estate transactions for their reconversion to hotel use accumulated a total of 93 million euros of investment, 46% more, distributed in 10 operations. In the case of land purchases to develop new hotels, they grew by 168%, to 85 million, with a total of eight operations.
Flag & Management: Free to new owner
Current Owner: Santander, through receivership
Main Photo: The Jandia Gold Hotel, Fuerteventura, the best of the seven apparantly
Financials: No doubt a dataroom will be granted access after EOI
Tenure: Freeholds we are guessing?
Agent: Not sure who, if anyone, has been appointed as yet – THPT investigating
Date Posted: March 2022
THPT Comment: Banco Santander has decided it’s time to stop messing around trying to be hoteliers, and get back to their day job? We’re being flip – always sad when a worthwhile hotel gets into financial trouble
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”
Each week we mail the opportunities posted in that period, but check-out the tab “Hotels Available” and call us for details of “Under the Table” – deals not posted on the site at all.
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