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