Credito Agricola Acquires Porto Palacio in Porto from Sonae Capital For €62.5m
Main Photo: The View From The Porto Palacio Restaurant
Date: September 2021
Name: Porto Palacio Congress Hotel & Spa
Location: Porto, Portugal
Number of Keys: 251
Seller: Sonae Capital
Buyer: Credito Agricola
Portuguese bank Credito Agricola has acquired a building complex in Porto, Portugal’s second largest city, which includes the 251-room Porto Palacio Congress Hotel & Spa, from Portuguese investor Sonae Capital for a total price of €62.5 million. The acquisition, made on behalf of their CA Patrimonio Crescente fund, includes two office buildings with a combined floor area of some 16,264 sqm. The five-star hotel, located on Porto’s Avenida da Boavista, has a total area of some 31,087 square meters. In early 2019, when a potential sale was first mooted, Sonae reported a total value for the entire complex of €70 million, of which the hotel accounted for just under half. On that basis, the hotel would reflect an indicative value of around €120,000 per room based on the price paid by Credito Agricola for the entire complex.
The hotel was formerly a Sheraton. In the wake of the pandemic, Sonae Capital changed its strategy for hotels. As business advanced in June, the projects it has under exploration in Porto (Porto Palácio, The Artist and The House), on the Tróia peninsula (Aqualuz Tróia and Tróia Residence) and in the Algarve (Aqualuz Lagos) now have “The Editory Collection Hotels” as an aggregator brand.
The holding company that also manages Sonae’s fitness, energy, real estate and industrial engineering businesses, has Paulo Azevedo as chairman and Miguel Gil Mata as CEO, will increase its portfolio in October, making its debut in the capital .
Installed at Lisbon’s train station, The Editory Riverside Santa Apolónia is an investment of 12 million euros, made possible by the concession, awarded in 2018, to operate the building belonging to Infraestruturas de Portugal for 35 years.
The Editory Boulevard Aliados Porto, a 68-room boutique hotel at number 45 on the most famous Avenida da Invicta, results from an investment of 1.2 million euros with a lease and exploration contract for the space. This new unit in the North of the country will only open in April 2022, about a year after the project was scheduled to be presented, which took place days before the pandemic was declared.
Price: €62.5m, which includes 16,264 sqm office space
Price per Key: €249k – adjusted as above €120k
THPT Comment: We think this is the first hotel acquisition from the CA fund…may there be many more…with the office space, the price per key is very good.
First Seen: https://www.4hoteliers.com/
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