The Abu Dhabi Investment Authority (ADIA), has acquired two portfolios in Spain for €800 million in partnership with Petra. Petra was recently established by Dominique Ozanne, Gaël le Lay, and Elsa Tobelem, who also founded Hova Hospitality in 2021. The leased hotel vehicle has grown to a €1.4 billion asset under management.
This confirms the investors' interest in the European market on one hand and the allure of the leisure market on the other. The Spanish market showcased the third most dynamic portfolio growth in 2022, trailing only the UK and Germany (source: MKG Consulting).
The two portfolios consist of:
- 7 hotels, totaling 2,331 rooms managed under the Meliá and Sol brands in the Calvia area of Mallorca, Spain. The investment will be held in a joint venture with Meliá International, which will retain a 49% interest in the properties.
- A portfolio of 17 Spanish hotels, comprising a total of 2,587 rooms in 11 cities, acquired from private owners. The portfolio includes 6 properties in Madrid and 8 resorts.
Gael Le Lay, General Manager of Petra, commented: “The value-add strategy for the two acquired portfolios will involve repositioning the properties to unlock their full potential. This, in turn, will contribute to the renewal of the hospitality offering in a major European hotel market.”
The Spanish hotels achieved the third-best RevPAR in the European market for the summer of 2023 (based on July and the first 3 weeks of August), reaching €103.1 (excluding taxes), with a +2.1 percentage point increase in occupancy rate compared to the summer of 2022 (a decrease of -2.4 compared to the summer of 2019). Both coastal and inland areas exhibited positive performance compared to the summer of 2022, with midscale properties delivering the best results (Source: MKG_destination).
Petra aims to become a pan-European hotel investor and asset manager, with offices in Paris and Madrid, targeting value-add opportunities. The company will operate alongside Hova Hospitality, a leased hotel vehicle.
Dominique Ozanne, President of Petra, said: “The European hotel real estate market remains highly fragmented, and we believe Petra can lead in institutionalizing the sector. Following the acquisitions, Petra will serve as the asset manager for the 24 hotels in the portfolio, encompassing 4,918 rooms across Spain. The company will also continue to actively seek value-add hotel investment opportunities across Europe.”
Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, stated: “The robust recovery of leisure travel following the pandemic presents compelling investment opportunities in the hotel real estate market. The recent investments made through the new platform with Petra AM reflect our strong conviction in the European hotel leisure sector.”
ADIA has declared its aim to target 15 to 30% of its portfolio in the European market.
