Thailand-based Minor International (MINT) has divested two of its properties in Portugal’s Algarve region to Spain-based real estate investment manager Azora.
The two hotels, Tivoli Marina Vilamoura resort and the Tivoli Carvoeiro resort, were acquired for $174m (€148m).
The properties were bought on behalf of Azora European Hotel and Lodging Fund via a sale-and-manage-back transaction.
NH Hotel Group, on behalf of MINT, will operate the two hotels under the Tivoli brand for an initial period of 20 years.
Under the hotel management agreements, this period can be extended for another ten years.
MINT CEO Dillip Rajakarier said: “The transaction reiterates the combined strength of MINT and NHH in the execution of another strategic asset rotation with a respected real estate institutional investor in Europe, following the sale and lease back of the NH Collection Barcelona Gran Hotel Calderón last month.
“It reinforces yet again our ability to spot a quality asset, make investments to enhance the value, and subsequently realise such value.”
Algarve’s five-star Tivoli Marina Vilamoura resort features 383 deluxe rooms and suites spread across nine floors. The hotel has several dining venues, a spa, and many more facilities.
The five-star Tivoli Carvoeiro Algarve Resort offers 248 bedrooms, suites with balconies and new Family Rooms.
Rajakarier added: “The transaction further enhances the overall return of the Tivoli portfolio, in addition to the earlier transaction completed in 2019. The transactions generated an overall annual unlevered IRR of high teens for our Tivoli portfolio. Asset rotation continues to be a part of our long-term strategy, and we will continue to look for opportunities to execute this strategy going forward.”
MINT acquired a 94.1% shareholding stake in NH Hotel Group for $2.7bn (€2.3bn) in October 2018.
In 2019, NH Hotel Group reached agreements with MINT to integrate the latter’s hotels in Portugal and Brazil into its operations.