US-based private investment firm Starwood Capital Group has created a new joint venture (JV) with Spanish hotel operator Melia Hotels International to acquire properties across key resort locations in Spain.
Starwood’s controlled affiliate will hold 80% stake in the new JV and Melia Hotels will own the remaining 20% interest.
The new JV initially will acquire seven beachfront hotels with 2,933 rooms, in a deal worth €176m ($198m).
Starwood Capital Group European Hotels vice-president Keith Evans said: "We are delighted to be partnering with Melia on this transaction, and to build on the strong relationship we have already established with the company’s executive team.
"With their irreplaceable locations, strong cash flow-producing businesses and consistent operating track records, these properties present an attractive portfolio with significant potential still to be realised."
Melia Hotels International is the operator of properties being acquired, and will continue to be managed by Melia once the deal concludes.
The properties being acquired include Sol Principe in Malaga, Sol Lanzarote and Melia Gorriones (Fuerteventura) in the Canary Islands, Sol Ibiza and Sol Pinet Playa in Ibiza and Sol Mirlos and Sol Tordos in Palmanova and Mallorca.
Sol Ibiza will be renamed as Sol Beach House Ibiza and Sol Pinet Playa will become Sol House Pinet Ibiza. Melia Gorriones property’s main portion will continue to operate under the Melia brand, while the current annex will be rebranded as Sol Beach House Fuerteventura.