RLH Properties Acquires the Hotel Villa Magna in Madrid for €210 Million ($237 Million U.S) From the Do?u? Group

Spain, Madrid. December 05, 2018

The investment company RLH Properties (BMV: RLHA), founded by BK Partners, today announced the acquisition of Hotel Villa Magna, an emblematic luxury hotel located in the center of Madrid, for €210 million from the Do?u? Group.

The deal is scheduled to close in mid-December and reinforces the business model of RLH Properties, an international property company listed on the Mexican Stock Exchange (BMV) focused on ownership of branded hotel and residential assets, in the luxury segment.

According to Jerónimo Bremer, President of the Executive Committee of RLH, and founding partner of BK Partners, "This operation represents an important milestone in our strategy of investing in unique real estate assets for the hotel sector. The acquisition of Hotel Villa Magna, one of the most representative of Europe in the luxury segment, also confirms our enormous confidence in the Spanish market, one of the most dynamic and attractive in the world. " 

As stated by Borja Escalada CEO of RLH Properties and partner of BK Partners, "The purchase of Hotel Villa Magna is the first step in our international expansion, with an emblematic luxury hotel located in the best area of Madrid. This, together with our proven experience in the management of this type of real estate assets, has great potential to create shareholder value. Therefore, we believe that this transaction is excellent news for our investors and shareholders and we hope to be able to announce new investments in Spain and Europe soon." 

RLH Properties enters into the Spanish market

The Villa Magna hotel, founded in the 1970's on the Paseo de la Castellana in Madrid, was born to compete as a modern establishment compared to other hotel offers and to lead the luxury segment. Historically it was managed by Hyatt. It was completely remodeled in 2009.

RLH Properties is currently the owner, among other assets, of the Four Seasons Hotel in Mexico City, the Rosewood Mayakoba Hotel, Banyan Tree Mayakoba, Andaz Mayakoba, Fairmont Mayakoba, the PGA El Camaleón golf course and the Mandarina Development, which includes the Hotel One & Only Mandarina, currently under construction, Hotel Rosewood Mandarina, in development, along with residential developments.

On the buyer's side, Credit Suisse has acted as the financial advisor, and Perez-Llorca, as the legal advisor; and on the side of the seller, JLL, as the real estate investment adviser, and Clifford Chance, as the legal advisor.

Related News

Choose a Social Network!

The social network you are looking for is not available.

Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.