Selenta Chain of Five Hotels in Spain Under Negotiation for €450M….or NOT?

Main Photo: Part of the Gastronomy offering at The Sofia Hotel

Date: February 2021

Locations: Barcelona, Marbella, Tenerife and Valencia, Spain

Names: Sofia Hotel, Barcelona (an Unbound by Hyatt); Don Carlos Resort & Spa and the Sir Anthony boutique hotel, both in Marbella; The Mare Nostrum, in South of Tenerife; Expo Hotels in Barcelona and Valencia,

No. Keys: 2,600

Seller: The Mestre family is negotiating the sale of its hotel chain to an international fund for about €450 million. The group has succumbed to the acute tourism crisis caused by the pandemic….Although their spokesman says this NOT CORRECT

Potential Buyers: Large international financial groups such as Blackstone, Goldman Sachs, Fortress or Lone Star are believed to have analysed Selenta’s sales notebook, which is made up of a portfolio of high-quality hotels in Barcelona, ​​Marbella, the Canary Islands and Valencia. In total, five establishments that have about 2,600 high-class rooms.

According to EjePrime the negotiation is in its final phase. “There are already four or five offers on the table; the decision should not be delayed”, they point out. The sale is directly piloted by Albert Tomás, CEO of Selenta, who has a solid professional career in the financial field and in mergers and acquisitions processes.

The operation includes the management team after the sale, since it is considered a valuable and fundamental asset to add value to the group once the pandemic is overcome and the hotels reopen.

Selenta is chaired by Jordi Mestre, who also chairs the Barcelona Hotel Guild. The chain has promoted an ambitious investment plan in recent years that led it to completely renovate the Sofia hotel in Barcelona, ​​after an investment of €60 million, and the Torre Catalunya, also in Barcelona. This last establishment became the Nobu Hotel Barcelona after a 30 million euro reform (not included in the sale).

These investments have placed the group’s indebtedness at €200 million euros at a very difficult time for a hotel chain. At the end of last year, Selenta already divested of Nobu Hotel Barcelona, ​​which ASG Homes bought for €80 million. But It was not enough, to solve their financial problems.

“The sale offer will be between €400 million and €450 million; the discount on the real value will not be very high, around 10%, because all the assets are of high quality” according to sources in the sector.

The Sofia hotel is the jewel in the group’s crown. It is a five-star luxury hotel with 465 rooms and a great gastronomic offer. Most of it’s occupancy comes from international clients. There are also two well-known five-star establishments in Marbella: Don Carlos Resort & Spa, with 243 rooms, and the Sir Anthony boutique hotel, with 70 rooms.

The Mare Nostrum, a resort with various establishments with more than a thousand rooms in the south of Tenerife, is also highly recognised in the tourism sector. Finally, Selenta has two urban establishments, the Expohoteles de Barcelona and Valencia, with 423 and 378 rooms, respectively. In addition to these establishments, there are other tourist assets within the operation, such as the Nikki Beach in Marbella and the Hard Rock Café in Tenerife.

In short, a collection of these high-quality tourist assets that will end up in the hands of a venture capital fund. “Only those who have fresh money can undertake this operation, because in a context like the current one, no bank will lend money to a hotelier to undertake this purchase”, say experts from the tourist activity.

THPT Comment: Clarification required as to whether the hotels are for sale or not….. Having sent t a copy of this post to the directors of Selenta, they appear to be fairly adamant that this news report is “somewhat premature”!

First Seen: Iberian Property

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