Spain: FREO Group has launched a new platform with plans to invest €400 million in urban and leisure hotels in Spain on behalf of institutional capital.
FREO Group is an independent international investor, developer and manager of real estate. FREO Spain, which launched in 2015, has closed approximately €750 million of transactions, both as co-investments and on behalf of institutional investors, led by Daniel Mayans.
The new platform for investment in hotels will be led by Andrew Hunter. FREO is considering urban hotels in Barcelona and Madrid, as well as leisure hotels on the Balearic Islands, the Canary Islands and the Costa del Sol.
FREO plans to reposition the hotels, and is currently under exclusivity on a number of transactions.
Hunter, managing director and head of hotels for FREO, said: “Covid has provided a significant temporary disruption to hospitality but we are long-term believers in the sector. The current surplus of investment capital and support packages for hotels means that we must do more than ride the cycle and our strategy is very targeted, looking only at quality locations with strong upgrade potential to provide a sound investment basis. However, we are also focused on value creation through efficiency and aggregation and will be looking at innovative new products and growth potential, as well as honouring our ESG ambitions by recycling and improving products, retaining and upskilling staff and creating more efficient assets to reduce environmental impact.”
Mayans, managing director and head of Spain for FREO, said: “Despite the disruption caused by the pandemic over the last year, Spain remains highly attractive to investors as a result of its relative maturity as a market alongside its potential for further growth. The leisure market in Spain is one of the most important in Europe and has a number of excellent operators with inspiring product, but there is space for much more diversity, internationalism and next-generation product. Having completed a significant number of transactions and asset management programmes to deliver best-in-class and future-proofed assets, we are excited to continue our expansion and look forward to announcing further acquisitions in the near term.”
In 2019, FREO acquired a stake in and agreed a strategic partnership with Michels & Taylor, a hotel management and advisory company in Europe. FREO is seeking further opportunities for its capital in other countries such as the UK, France and Italy.
Further information about FREO Group can be found here.