Alantra advised Palladium Hotel Group on its joint venture with Azora Capital

Jun 2019

Joint venture

Value €225 million

Alantra, an independent global investment banking and asset management firm, has advised Palladium Hotel Group, a leading hospitality company in Spain, in the carve-out and sale asset portfolio and creation of a joint venture with Azora Capital with a committed minimum investment of €500m in the European resort hotel sector.

Founded in Ibiza in the late 1960s, Palladium Hotel Group is one of the leading hospitality groups in Spain with a presence in 6 geographies including Spain, Italy, Mexico, Dominican Republic, Jamaica and Brazil. The company owns c. 50 hotels with a total of 14,200 rooms which are managed through a portfolio of 10 differentiated brands.

The new joint venture, where Azora holds 75% of the shares and Palladium holds 25%, has acquired three hotel assets owned by Palladium Hotel Group for €115m. The joint venture will invest additional CapEx of €110m for a total initial investment of €225m.

The assets acquired are the 5 star BLESS Hotel Ibiza (Leading Hotels of the World) with 151 keysand which has just been repositioned as part of the deal, the 3 star Fiesta Hotel Tanit, also in Ibiza, with 440 keys and the 4 star Fiesta Sicilia Resort located in Cefalú, Sicily, with a total of 529 keys, both of which will be turned into 5 star assets.

Founded in 2003, Azora is one of the largest independent investment managers in Spain specializing in real estate assets. The company has a team of more than 200 professionals, managing assets worth more than €5.3bn.