Principal Real Estate Europe Acquires The Ona Hotel Terra Barcelona
Main Photo: The Ona Hotel Terra
Date: January 2020
Location: Plaza de Espana, Barcelona, Spain
Name: The Ona Hotel Terra, a 3 Star hotel
No. of Keys: 152
Seller: A local real estate developer
Buyer: On behalf of the Principal Hotel Real Estate Fund II ( “Hotelfund II” ) they closed on the acquisition of the Ona Hotel Terra in Barcelona for € 40.50 million. The 3* hotel has 152 rooms, a restaurant, a bar, 2 meeting rooms as well as a rooftop terrace with swimming pool offering exceptional views over Plaza de España and Palace of Montjuic. As part of the transaction a long-term lease was entered into with Ona Hotels, a family owned Spanish hotel group based in Barcelona which operates 40 hotels in 4 countries (Spain, Andorra, Morocco and Tunisia) with around 5,500 rooms.
This acquisition reflects the value-add strategy of Hotelfund II to focus on strategically located, high quality 3-5* hotels in major cities across Europe with significant potential to increase value.
Accordingly this hotel, was secured for the Hotelfund II by Principal in a forward purchase contract whilst still under construction as it is one of the last hotels to receive a building permit before the hotel development moratorium in Barcelona and is ideally located in the centre of Barcelona next to the convention centre “La Fira” in a pedestrianised street just behind Plaza de España.
Principal therefore acquired the hotel once construction completed and the brand new hotel opened on the 17th of January 2020. Going forward Principal expects good performance and value enhancement of this asset as it benefits from the strong general hotel market development in Barcelona throughout 2019 and beyond, the normal ramp up in trading of a newly opened hotel, dynamic lease structure and high-quality characteristics of this hotel real estate asset; all in line with Hotelfund II’s investment strategy.
Jochen Schaefer-Suren, CEO of Principal’s Hotel and Leisure division, commented: ” The Ona Hotel Terra in Barcelona is an exciting investment for our Hotelfund II as it is a very attractive value-add opportunity in particular as the hotel development moratorium in Barcelona should constrain supply and provide a unique opportunity to benefit from future demand growth to all existing hotels including our new hotel in Barcelona.
Price: €40.50m
Price per Key: €266,447
THPT Comment: Barcelona’s restriction on planning consent for new hotels is keeping the city’s market very buoyant.
First Seen: Hospitality Net
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