Following clearance by the European Unionās competition authority, The Abu Dhabi Investment Authority via a subsidiary Coral Reef has closed on a deal to acquire a 17-hotel portfolio in Spain.
Business advisory JLL, which brokered the deal for the sovereign wealth fund, said it is a ālandmark sale of the largest hotel portfolio in Spain.ā
The seller is Spainās Equity Inmuebles fund, which is majority owned by three Spanish families ā the Briones, Calero and Mazin family offices.
In June, Spanish business publication CincoDĆas said the deal had a price tag of ā¬600 million ($647.5 million). Although in April 2022, CoStar News reported that the business advisory was looking to find a buyer for the portfolio at a guide price of ā¬700 million.
The portfolio consists of full-service hotels in Spainās most popular tourism destinations, with capital Madrid making up approximately 37% of the total room count, according to a news release.
Probably the most notable hotel in the portfolio is the 192-room ME Madrid Reina Victoria by MeliĆ”, which occupies a 19th century palace on the Plaza de Santa Ana.
Eight of the other hotels are affiliated with brands MeliĆ” and Sol, and the remaining eight are affiliated with Tryp by Wyndham, according to CincoDĆas' June report.
CincoDĆas also said the portfolio will be managed by MeliĆ” Hotels Intenational.
The European Union stated the āacquisition would raise no competition concerns because of its limited impact on the market. The transaction was examined under the simplified merger review procedure.ā
āThis historic transaction signifies a major milestone in the real estate market. The strong interest from global investors, particularly from the Middle East, who accounted for nearly 50% of transaction volume in Spain as of August 2023, underlines the resilient and appealing nature of the hospitality sector,ā said Patrick Saade, JLLās senior managing director for hotels and hospitality capital markets in Europe, the Middle East and Africa.