Abu Dhabi Sovereign Wealth Fund Goes Back to Spanish Leisure Assets

Posted on 09/04/2023

Petra is a pan-European hotel investor and asset manager with offices in Paris and Madrid targeting value-add opportunities which was created by Dominique Ozanne, Gael Le Lay, and Elsa Tobelem. Dominique Ozanne was CEO of Hotels for Foncière des Régions.

Petra launched a value-add hotel investment platform with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The company will operate alongside Hova Hospitality, a leased hotel vehicle which began operations in 2021 and has grown to an AUM of €1.4 billion.

ADIA, through the platform created with Petra, closed on two large portfolio acquisitions which are summarized below:

1. Mallorca, Spain – acquisition of 7 hotels in a JV with Melia International: The platform acquired a 51% interest from US private equity group Avenue Capital in a seven-hotel portfolio and a beach club in the Calvia area. The portfolio includes 2,331 rooms managed by Melia under the Melia and Sol brands. The investment will be held in a joint venture with Melia International who will continue owning the remaining 49% interest in the properties.

2. Spanish Portfolio – acquisition of 17 hotels managed by Melia: The platform closed on the acquisition of 100% of a 17-hotel Spanish portfolio totaling 2,587 rooms across 11 cities from private owners. The portfolio includes six properties in Madrid and eight resort properties which will be renovated and repositioned to maximize their performance.

ADIA is betting on Spain’s leisure travel market. ADIA has a high conviction in the the European hotel leisure sector, a sharp turn from the COVID-19 pandemic lockdowns.

Following the acquisitions, Petra will act as asset manager for the 24 hotels in the portfolio, covering 4,918 room across Spain and will continue to actively seek value-add hotel investment opportunities across Europe.

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