Greek Sani/Ikos Group Enters Strategic Partnership Agreement with GIC Valuing the Business at €2.3bn
Main Photo: The Blau Porto Petro, an Ikos acquisition in September 2021
Date: September 2022
Name: Sani Resorts and Ikos Resorts – SIG
Locations: Spain and Greece
Number of Keys: 11 hotels between the two brands…Keys TBA
Seller: GIC will be buying the stakes from investors that include Oaktree Capital Management, Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE. Founders Stavros Andreadis, Andreas Andreadis and Mathieu Guillemin will continue to manage SIG
Buyer: Singapore’s wealth fund, GIC
Sani/Ikos Group (SIG), the leading luxury beach resort group in the Mediterranean, and GIC, global institutional investor, have entered into a strategic partnership under which GIC will become the leading shareholder alongside SIG’s management team. The transaction values the Sani/Ikos Group at €2.3 billion. The transaction is expected to close in the 4th quarter of 2022, subject to customary regulatory approval.
Under the leadership of its founders, Stavros Andreadis, Andreas Andreadis and Mathieu Guillemin, who remain significant shareholders, SIG has grown from the family-owned Sani Resort in Greece to the fastest-growing and most successful luxury resort owner-operator in the Mediterranean. Since its creation in 2015 SIG has expanded it’s asset base and scale by a factor of four with the backing of blue-chip investors including funds managed by Oaktree Capital Management L.P., funds managed by Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE who will be selling their stakes to GIC as part of this transaction.
Andreas Andreadis and Mathieu Guillemin will continue to manage SIG as CEOs and Co-Managing Partners, while Stavros Andreadis will become Honorary Chairman of the Group.
The strength of SIG’s business has been evidenced by it’s growth and resilience, including during Covid. In 2022, bookings at SIG resorts were up +52% compared with 2021 and +57% compared with 2019. Both Sani and Ikos concepts are delivering exceptional guest satisfaction in outstanding beach resort properties. Ikos has successfully combined, in an innovative way, real luxury with the power of all-inclusive as illustrated by the #1 global ranking achieved in TripAdvisor’s Traveler’s Choice Best All-Inclusive category for five consecutive years to 2022.
The new partnership with GIC will further strengthen the resources available to the Group to deliver on it’s five-year investment plan of over €900 million, contributing to the support of local economies and the creation of new jobs in the Mediterranean.
SIG has also gained recognition among the industry for it’s continuous commitment to social responsibility and a future of sustainable tourism. The Sani Green programme, which launched in 2008, and Ikos Green, which began at the brand’s inception, have developed over the years into an integrated, award-winning ESG programme that focuses on delivering positive environmental, social, and economic results.
“We are excited to welcome GIC on board and look forward to bringing the Sani/Ikos Group magic to guests across the Mediterranean and beyond”, said Andreas Andreadis and Mathieu Guillemin, CEOs of the Sani/Ikos Group. “Over the past years, the Sani/Ikos Group has led a remarkable path, with significant investments, international expansion and strong financial performance. This was achieved despite the pandemic and thanks to the support of our shareholders, who were outstanding partners, and to our management and employees whose dedication and talent are second to none in our industry. We can now solidify our leading position across the Mediterranean, to the benefit of our shareholders, our people and the communities where we operate.”
Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, said: “We are pleased to partner the Sani/Ikos Group as they continue their efforts to strengthen their brand and expand their presence in Europe. The group’s assets are well-located and the team is known for providing excellent hospitality experiences. We believe this investment will generate resilient returns and is testament to our confidence in the Greek and wider European tourism sector over the long term.”
Tracy Stroh, Region Head of Europe, Real Estate, GIC, said: “Given its strong brand, we believe the Sani/Ikos Group is well-positioned to capitalise on the growth of the Mediterranean Europe resort market. We look forward to working with SIG’s management team to add value by enhancing existing assets and offering attractive resort accommodation in the region.”
On 22 July 2021, Sani/Ikos Financial Holdings 1 S.à r.l. issued €300,000,000 5.625% Senior Secured Notes due 2026 (the “Notes”). The Notes include a portability feature and are expected to remain in place following closing of this transaction.
Price: The deal values SIG at €2.3bn
Price Per Key: TBA
THPT Comment: Well….. luxury, sustainability and large fund backing (both past and future) seem to have done the trick for SIG – expansion funds under their belt and the founders have hung onto a stake…well done
First Seen: GIC press release
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