Marriott Acquires Remaining Stake in AC Hotels

Main Photo: The Cotton House Hotel, Barcelona

Date: April 2019

Location: Mainly Spain, 10 hotels in Italy and 1 in Portugal

Name: The AC Hotels

No. of Keys: TBA

Seller: Founder of AC Hotels Antonio Catalan has sold his remaining 40% stake in AC Hotels to Marriott International for a reported €140 million.

Marriott entered a joint venture with Antonio Catalan in 2011 to continue the management and franchising of their newly formed co-brand across Europe and Latin America — AC Hotels by Marriott.

While AC Hotels entered the partnership heavily indebted in 2011, the company has strongly benefitted from Marriott’s visibility and recorded a net profit reaching €71 million in 2017. The figures are expected to have grown by a further 8% in 2018.

Buyer: Marriott, the largest hotel conglomerate in the world with 7,300 establishments in its portfolio.

The new operation will involve the dissolution of the joint companies and the creation of a new one, which will allow Antonio Catalán (Navarra, 1948), in his capacity as President of AC by Marriott, to use any of the hotel giant’s brands, not only AC and Autograph.

He is thinking of entering the tourist segment on the Costa del Sol and the tourist apartment business in Seville.

The company Belagua 2013. In 2017, the latest year for which accounts are available, that company recorded revenues of €188 million and generated a net profit of €71 million, which is expected to grow by 8% in 2018. Catalán also owns other companies with individual hotels, bringing his total revenues to €260 million.

In Spain, AC Hoteles is working on several hotel openings in Santa Cruz de Tenerife, Madrid, Cartagena and Andorra, assets that will operate under the AC by Marriott brand. It is also working on openings in Sevilla, Valencia and Bilbao, which will operate under the Autograph Collection brand.

Price: €140m for 40%, valuing the whole at €350m

THPT Comment: Good deal all round!

First Seen: AURA Real Estate News

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