Victoria Hotels Sells Key Assets for Strong Returns
Deal News | Jun 11, 2025 | Iberian Lawyer
Victoria Hotels & Resorts, an investment vehicle associated with Bankinter Investment, GMA, and Meliá Hotels International, has divested two key assets, the Hotel Innside Zaragoza and Hotel Innside Palma Bosque. The sale aligns with its strategic focus on profitability and high-level asset management in the hospitality sector. The Hotel Innside Zaragoza was acquired by a private investor, whereas Hotel Innside Palma Bosque was sold to a joint venture involving Meliá and another institutional investor. Executed through call options, these transactions generated a combined asset value of 74 million euros, offering a capital gain of 36 million euros, equating to a 95% gain. The internal rate of return at the asset level exceeded 25%, far surpassing the initial target of 9%. The transactions were advised by the law firm Pérez-Llorca, reinforcing Victoria Hotels' status as a leading player in the Spanish hotel investment market.
Sectors
- Hospitality and Tourism
- Real Estate Investment
Geography
- Spain – Spain is the geographical focus of the article, as the hotel assets involved are located in Zaragoza and Palma, and the transactions were advised by a Spanish law firm.
Industry
- Hospitality and Tourism – The Hospitality and Tourism industry is relevant as the article discusses the sale of hotel assets, specifically two major hotels in Zaragoza and Palma Bosque, which are key to the hospitality sector.
- Real Estate Investment – Real Estate Investment is relevant as it pertains to the strategic sale and divestment of physical assets like hotels by Victoria Hotels & Resorts, highlighting investment returns and strategy.
Financials
- 74 million euros – Combined asset value for the two hotels.
- 36 million euros – Capital gain from the transactions.
- 25% – Unleveraged internal rate of return (IRR) at the asset level.
- 9% – Initial targeted leveraged IRR for investors.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Victoria Hotels & Resorts | Target Company | Company | An investment vehicle involved in the sale of hotel assets. Promoted by Bankinter Investment, GMA, and Meliá Hotels International. |
| Bankinter Investment | Promoter | Company | A leading bank in Spain involved in investment and financial services, backing Victoria Hotels & Resorts. |
| GMA | Promoter | Company | Works with Bankinter Investment and Meliá Hotels International to promote Victoria Hotels & Resorts. |
| Meliá Hotels International | Promoter/Joint Venture Partner | Company | One of the partners in Victoria Hotels & Resorts and part of the joint venture acquiring one of the sold hotels. |
| Pérez-Llorca | Legal Advisor | Company | A law firm that provided corporate and tax advice for the transactions. |
| Private Investor | Buyer | Company | Acquired Hotel Innside Zaragoza. |
| Joint Venture with Institutional Investor | Buyer | Company | Acquired Hotel Innside Palma Bosque along with Meliá Hotels International. |