ActivumSG has completed the €51 million sale of the 118-room Palacio Solecio hotel in Malaga to an undisclosed buyer.
The property was originally an Andalusian palace and had become derelict after the previous owners halted a planned redevelopment of the property in the financial crises of 2008. Following a €8 million acquisition by ActivumSG-advised fund Iberia I, it underwent an extensive refurbishment and was transformed into a 118-room luxury hotel. Set over 87,000 sq ft, the hotel also comprises a rooftop bar and swimming pool.
Speaking with Hospitality Investor earlier this year, ActivumSG founder & MD Saul Goldstein said conversions are still very much a part of its strategy, stating ““We’re currently looking at trying to take older hotels in Spain and converting them into a higher quality product.”
Ashurst acted as legal advisor to the transaction and real estate consultants JLL and Knight Frank acted as commercial advisors.
What they said
Saul Goldstein, founder and CEO of ActivumSG said: “This project was a classic ActivumSG investment where we were able to acquire a great site and add value. Here we leveraged our vertically integrated capabilities and revitalised a historic site to create a landmark hotel in one of Spain’s most exciting destinations. Given the slower transactional landscape, this sale demonstrates the clear appetite among investors for high-quality, well-located hospitality assets. Spanish hotels stand as one of our longest-held conviction calls and sits within our current wider focus on the accommodation or living sectors.”
Brian Betel, head of direct asset transactions at ActivumSG added: “We remain very active in Spanish hospitality. We are adopting a dual strategy of ground-up development in supply-constrained sub-markets together with acquiring and modernising existing owner-operated hotels to create institutional-quality assets.”