Sixth Street, (formerly known as TPG Sixth Street Partners (TSSP), has announced the acquisition of five hotels with over 1,000 rooms, all located on the coast of Spain. This announcement is part of a new partnership between Sixth Street and Pierre & Vacances Spain for the acquisition, capital investment and operation of holiday hotels and resorts in Spain.
In this transaction, Sixth Street plans to deploy approximately 85 million euros to purchase and refurbish the portfolio of 3 and 4-star hotels which are located in Benidorm, Roquetas de Mar, Lloret de Mar and Salou. The planned capex aims to raise the quality and services of the properties as well as adapting them to Pierre & Vacances’ standards.
The five hotels have a total of 1,039 rooms and as a result of this trade, Pierre & Vacances will have a portfolio of more than 5,000 units distributed across 48 complexes and hotels, representing a 16% increase in its accommodation capacity.
Pierre & Vacances Spain is the Spanish subsidiary of a European leader in holiday apartments, hotels and resorts with over 50 years of history. José María Pont, CEO of Pierre & Vacances Spain commented on the acquisition: “Despite the fact that the Covid-19 crisis is still ongoing, both companies are aware that Spain is and will be a top destination for European tourists in the coming years. This alliance is an important step towards making Pierre & Vacances one of the most important leisure tourism operators in Spain.”
Sixth Street is an international investment fund with over 60 billion dollars in assets under management which partners with main international operators and invests in prime global tourism destinations. Advised by Colliers and Uría Menendez, the firm enters the Spanish hotel market with this transaction.
Gonzalo Gutierrez, Director of Colliers’ Hotel department, who leaded the deal, gives insight: “This transaction is great news for the vacation segment. The entry of an investor of the stature of Sixth Street in one of the year’s most relevant transactions confirms the existing investors’ appetite for the Spanish hotel sector. Moreover, the partnership between Sixth Street and Pierre and Vacances, an experienced hotel operator, will allow them to benefit from opportunities present in the sector to expand their initial portfolio.”