The Canadian multinational firm, Brookfield Asset Management, continues to invest in the Spanish hotel market as they finalise a deal to buy the Palladium Hotel Costa del Sol. It has been estimated that the acquisition will close above 50 million euros.
The property, valued at around 41 million euros, is owned by British fund Benson Elliot, who bought the hotel in November 2017 and has a management contract with Palladium Hotel Group. The deal between Brookfield and Benson Elliot will be closed through the purchase of the company Bensell Benalmádena, to be renamed Selenta Benalmádena. The Spanish hotel chain will continue to operate the property once Brookfield becomes the owner.
Palladium Hotel Costa del Sol is a 4-star hotel in Benalmádena comprising 336 rooms, including 11 suites. Its facilities include two swimming pools, a spa, a gym, 3 restaurants and 4 bars. The beachfront property sits on a prime location, on Malaga’s Costa del Sol, 19km from the city’s international airport and from Malaga’s city centre.
When the British firm bought the hotel in 2017, Senator Hotels & Resorts was operating the property. After major refurbishments, it opened again in September 2019 under the management contract of Palladium. Palladium Hotel Group is a well-established Spanish hotel chain managing 50 hotels in 6 different countries, Spain, Brazil, Mexico, Jamaica, Dominican Republic and Italy, and in 19 different cities. They operate under different brands ranging from 4-star adult hotels to luxury, business and leisure hotels.
Brookfield is one of the world’s largest alternative investment management companies, with 688 billion dollars of assets under management in 2021. One of their most important transactions in the Spanish hotel market took place last July in a sale-leaseback deal with the Spanish hotel group Selenta for 440 million euros. The deal included the acquisition of 100% of the management group and four hotels. Assets acquired were the Sofía Hotel Barcelona, the Expo Hotel Barcelona, the Don Carlos Resort & Spa in Marbella (Málaga) and the Mare Nostrum Resort in Tenerife. The establishments total more than 2,200 rooms.