Urban real estate manager Redevco (part of COFRA Holding AG) has made its foray into the hospitality market by acquiring 6 hotels on the Iberian Peninsula for €80 million. The move signals the launch of its Next Gen Stays joint venture platform.
The first hotels acquired by the company are located in Lisbon, Porto, Bilbao, Seville, and Malaga. They are the point of departure for its planned €250 million portfolio in the Portuguese and Spanish markets. The said portfolio will be aimed at youthful travellers seeking experiential tourism. Redevco has reportedly partnered with a Spanish boutique hotel operator to ensure the design and operational management of its properties.
The Next Gen Stays investment strategy aims to target under-utilised assets with local character and redevelop them to attract a younger, connected clientele. Carbon neutrality is central to the strategy and will each acquired property will be upgraded to reduce its environmental footprint. The entire portfolio is slated to be net carbon neutral by 2040.
After establishing itself in its initial destination market, Redevco harbours plans to expand across the rest of Europe with an investment target of €500-€700 million.
By marrying Redevco’s strong retail and urban regeneration real estate investment track record with best-in-class hotel operators, our Next Gen Stays strategy plays to the latest upcoming travel and consumer trends. The vast online ‘sharing economy’ market that Airbnb identified and opened up is now professionalising in a more community-focused way. Our Next Gen Stays hotels form a distinct market sub-segment to target the younger, tech savvy and sustainable travellers that are increasingly seeking out authentic, high quality yet affordable experiences.
Israel Casanova, Managing Director of Global Transaction Management at Redevco