Alantra Advises Banca March and Meliá International Hotels on Financing for Three-Hotel Portfolio in Spain

Aug 2024

Debt Advisory

Madrid – Alantra has advised Banca March and Meliá International Hotels (“MHI”) on the financing of a three-hotel portfolio in Spain. By combining its Debt Advisory product with Real Estate expertise, Alantra secured a highly competitive €90mn financing package with a local bank.

The portfolio comprises three hotels with a total of 845 rooms: the Meliá Fuerteventura and Innside Fuerteventura in the Canary Islands and the recently renovated Meliá Ibiza. Ownership is divided, with MHI holding a 20% stake and Banca March the remaining 80%. The financing will be used to refinance existing debt and support capital expenditure needs for the repositioning of two of the hotels in the portfolio, within the hotel company’s strategy to strengthen the premium and Luxury segments.

Meliá Hotels International, founded in 1956 in Mallorca, is Spain’s leading hotel group and ranks 19th worldwide. With a strategic focus on resorts and ‘bleisure’ destinations in top-tier cities and dynamic locations, MHI has grown exponentially, now operating 350 hotels across 38 countries on four continents. In 2023, Meliá generated €1.9bn in revenue and €487mn in EBITDA, with a market capitalization of €1.5bn.

Banca March, founded in 1926, is the only Spanish bank that has remained 100% family-owned since its inception. Specializing in private banking and advisory services for family-owned businesses, the bank currently employs 1,300 people and has a turnover of around €26bn. With a strong geographic presence, Banca March has also launched Morfeo Hotels as part of its Private Equity and Co-Investments strategies, a dedicated vehicle for acquiring hotel portfolios.

Jorge Roa, Managing Director and Head of Real Estate at Alantra, said: “This transaction not only reinforces our hospitality financing credentials with two Tier 1 clients but also highlights the success of our sector and product expertise model.” Guillermo Hernandez, Vice President responsible for the Real Estate debt advisory team, added: “This model has truly become a cornerstone of Alantra’s DNA, and we look forward to continuing our close collaboration with these esteemed clients.”