Investment firms Tikehau Capital, based in Paris, and Quest Capital, based in Lisbon, have secured alternative funding from Maslow Capital to help debut their new in-house operator Selecto.
A news release from Maslow said a portfolio of four Selecto “projects in Madrid, Málaga and Barcelona, [have] a combined gross development value of more than €200 million ($228 million).”
Select-service operator Selecto was founded in June in a franchise agreement with IHG Hotels & Resorts to develop new-build Holiday Inn Express properties across Spain and Portugal.
IHG said it signed franchise agreements for three of the hotels on June 30: the 259-room Holiday Inn Express & Suites Málaga Palacio de Congresos; 244-room Holiday Inn Express Madrid Julián Camarillo; and 150-room Holiday Inn Express Barcelona Fira. The Madrid hotel is the first asset in the Selecto platform to move into development.
The funding will also support a second Selecto hotel in Madrid that will be built in the Spanish capital’s Las Tablas district, Maslow said in the release.
A second round of expansion will include Selecto and IHG hotels opened in Bilbao, Seville and Valencia in Spain, and Lisbon and Porto in Portugal.
“Selecto brings together many of the elements we look for in our partners: A clear strategy, leading operators and projects with long-term potential,” Emilio Silvestre, managing director and head of origination for Spain at Maslow Capital, said in a statement.
Iberian partners Albatross Capital and Quantico SA founded Quest in June as part of a platform with more than €1 billion in real estate properties under management across various asset classes.
Maslow Capital, which has offices in France, Germany, Ireland, Italy, The Netherlands, Spain, Portugal and the United Kingdom, has a portfolio valued at approximately €12.6 billion.
In May, Maslow completed €54.2 million of financing for a 235-room hotel in The Liberties district of Dublin. The hotel will be operated by Ascott International under its Lyf brand and is owned by London-based SCIO Capital.