Photo of Cefalù in Siciliy where the JV partners have purchased a resort.
The Azora Group has formed a new JV with Ibiza-based Palladium Hotel Group to create an investment vehicle which will invest up to €500 million in hotels across Europe with a special focus on the Mediterranean. Azora will own 75% of the new JV, while Palladium Hotel will own the rest.
The JV has kicked off with a €115M purchase of three assets in Ibiza and Sicily. The properties are the 151-room 5-Star BLESS Hotel in Ibiza, the 440-room 3-Star Fiesta Hotel Tanit in Ibiza and the 529-room 4-Star Fiesta Sicilia Resort in Cefalù, Sicily. An additional provision of €110 million has been made for capital expenditure.
BLESS Hotel Ibiza was previously known as Fiesta Hotel Cala Nova and has recently been refurbished from a 3-Star category with 305 rooms. The hotel re-opened its doors last June and has become part of the Leading Hotels of the World association.
The JV partners will refurbish the other two hotels in Ibiza and Sicily under Palladium’s 5-Star and 5-Star Deluxe brands. Azora has stated that the acquisition is a clear bet on growing Mediterranean destinations with strong potential such as Sicily.
According to Concha Osácar, Azora’s founding partner: «the creation of this alliance falls within our firm decision of investing in the resort hotel segment, with a strategy to transform assets with unique locations with the help of a leader in cutting edge innovations within the hotel segment such as Palladium Hotel Group.»
Abel Matutes Prats is the CEO of the Palladium Hotel Group. Palladium Hotel Group, part of the Grupo de Empresas Matutes, was known as the Fiesta Hotel Group until November 2012.
Alantra was financial advisor for Palladium Hotel Group in this transaction.