Spain: A fund overseen by ActivumSG Capital Management has sold the 161-room Hard Rock Hotel Madrid to Arlaes Management S.L for 65 million euros.
ActivumSG Iberia Fund I acquired the former office building in the Atocha district of Madrid with plans to convert the site into a hotel. The team acquired an adjacent plot to broaden the hotel’s footprint, which finally opened in July 2021.
A management agreement was signed with Hard Rock International, which will continue to operate the hotel.
Facilities at the property include restaurants and bars, an outdoor swimming pool, a fitness centre and guest car park.
Brian Betel, ActivumSG’s head of direct transactions in Europe, said: “We’ve taken this hotel project from a concept through to an operational asset primed for new ownership, in line with our development strategy of creating and selling great hotels.
“Our pan-European hotel strategies started in 2015, when we began to assemble a portfolio of assets in Spain’s major destinations. We went on to acquire Odyssey Hotel Group last year for scaling its footprint across the continent.
“We’re positive about the sector, anticipating a rebound in tourism and eventually business travel as the Covid-19 pandemic recedes, so we’re looking for fresh investment opportunities,” he added.
ActivumSG funds own, are building, or operate 22 hotels across Europe (approximately 4,000 keys). This number will increase to more than 7,750 with the pipeline of openings for Odyssey Hotel Group in the coming years.
Advising ActivumSG Iberia Fund I on the Madrid hotel sale were JLL and Latham & Watkins, while Knight Frank acted for Arlaes Management, S.L.