A company created by asset manager Azora Capital SA and Palladium Hotel Group invested €225 million in its first acquisitions in the European resort hotels space.
The joint venture, owned 75% by Azora and 25% by Palladium, bought two properties from Palladium in Ibiza, Spain, and one in Sicily, Italy, for an aggregate €115 million. It will invest an additional capital expenditure of €110 million across the hotels, the two Spanish companies said in a release.
The venture plans to refurbish and reposition the three-star Ibizan Fiesta Hotel Tanit and the four-star Fiesta Sicilia Resort under Palladium's five-star deluxe brand, TRS. The third hotel, Bless Hotel Ibiza, was upgraded and opened in June as a five-star deluxe property.
The joint venture is seeking further acquisitions and will invest up to a total of €500 million in other hotels in the Mediterranean and hotels and hostels in the main European tourist cities.
