Spain/Portugal: Urban real estate manager Redevco has entered the hospitality market with the acquisition of six hotels in Portugal and Spain to seed the launch of its ‘Next Gen Stays’ JV platform.
Redevco plans to build a €250 million portfolio in the Iberian markets which caters to youth tourism and experiential travel. The first acquisitions are based in Lisbon, Bilbao, Seville, Porto and Malaga.
It has been reported that Redevco has partnered with a Spanish boutique hotel operator to drive the design and lease the assets, according to IPE Real Estate.
Redevco’s Next Gen Stays investment strategy will target under-utilised assets with redevelopment potential. Assets will be pre-leased to a professional operator at the time of acquisition and then upgraded to improve each site’s environmental footprint. Redevco aims to transition its entire real estate portfolio to net carbon neutral by 2040.
Once established in Iberia, Redevco will expand across Europe with a target €500 to €700 million investment volume.
Israel Casanova, managing director of global transaction management at Redevco, said: “By marrying Redevco’s strong retail and urban regeneration real estate investment track record with best-in-class hotel operators, our Next Gen Stays strategy plays to the latest upcoming travel and consumer trends.
“The vast online ‘sharing economy’ market that Airbnb identified and opened up is now professionalising in a more community-focused way. Our Next Gen Stays hotels form a distinct market sub-segment to target the younger, tech savvy and sustainable travellers that are increasingly seeking out authentic, high quality yet affordable experiences.”
Redevco is part of COFRA Holding AG and has under management around €9.7 billion worth of assets.