Archer Hotel Capital, the JV formed by Singaporean fund GIC and Dutch pension fund APG, has payed €205M for the luxurious Madrid Edition hotel which was developed by KKH and will open its doors in the last quarter of the year when the construction works are expected to conclude.
The vendor, KKH Property Investors, developed the hotel which was operated under one of Marriot’s premium brands. In February 2020, before the pandemic hit, Archer and KKH reached an agreement to transact the hotel for €220M a price which has subsequently been chipped by 6.8%. Archer also owns the Westin Palace hotel and the Hotel Arts of Barcelona.
The Marriot-managed Madrid hotel is located in the Plaza de las Delicias, in a calm square of the city surrounded by historical buildings. Together with the Paseo de Santa María de la Cabeza and Paseo de las Acacias, it forms the area known as the “Baroque Trident”. The Madrid Edition hotel will be one of the sector’s great new openings in the luxury segment in 2021 and will have 200 rooms (some with terraces), opening to the public in Q4. The hotel will have five unique food and beverage outlets including a signature restaurant, cocktail bar, Sky Bar and rooftop terrace, together with an outdoor pool, state-of-the-art fitness centre and spa. Flexible studios with over 350 sqm of dedicated space will host creative meetings and events for large group meetings and conferences.
The Government of Singapore Investment Corporation (GIC) is a government-owned company assigned to manage Singapore’s sovereign wealth fund with considerable interests in the Spanish real estate market in segments such as logistics, hotels, or offices. The fund is now officially named: GIC Private Limited. The GIC was formed in 1981 and, according to the Sovereign Wealth Fund Institute, controls the eighth largest sovereign wealth fund in the world, with c. $400 billion in assets under management according to The Sovereign Wealth Center research group.