The deal is Europe's biggest single-asset hotel sale of the year, and the second-biggest of all time. It is also Spain's largest-ever single-asset real estate deal in any sector. Jones Lang LaSalle advised the vendor, a Dutch-based holding company.
The Hotel Arts complex includes a 455-room grand deluxe hotel, 28 apartments, 140,000 sf of retail space including a casino, 133,000 sf of office space, a vacant plot zoned for office or hotel uses and an underground car park. The 44-storey hotel, managed by Ritz Carlton, is located in the Port Olympic with views over the Mediterranean Sea.
According to Nick Marsh, Executive Vice President of Jones Lang LaSalle Hotels, Europe, the deal underlines the resilience of the European hotels market since 11 September. He said there had been at least half a dozen major hotel deals concluded since then. 'This demonstrates investor faith in the European hotel sector. Despite declining occupancy and room rates in many operating markets, investors believe in the long-term fundamentals of the industry,' said Marsh.
Marketing of the Hotel Arts began in July 2001 with second round bids called on 16 October. 'The high quality of the asset and its prime location in one of Europe's strongest performing hotel markets ensured all bidding parties remained interested in the deal,' Marsh said.
Debt financing was provided by the Royal Bank of Scotland.
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