Limestone Capital has secured financing from Banco Pichincha Espana for the acquisition and repositioning of a hotel in central Madrid.
The funds will be used to refinance the acquisition and repositioning of the 88-key Hotel Axel located at 49 Calle de Atocha, which will be rebranded under Limestone’s five-star Aethos brand. Limestone bought Hotel Axel from Hotel Investment Partners last year.
The financing was provided in the form of a senior debt facility, with a loan-to-value ratio exceeding 50 per cent.
JLL advised Limestone Capital.
Why it matters
This is a continuation of Limestone’s expansion strategy following its recent acquisition of a five-star resort hotel on Sardinia’s Costa Smeralda. Speaking exclusively with Hospitality Investor in January, Limestone Capital CEO said the company continues to explore markets such as Greece, Spain as well as those in the German-Speaking Area.
What they said
Grazi Angelucci Paineli, managing director of M&A at Limestone Capital said: “The lower availability of finance across the market has been well-publicised, but the refinancing of our Madrid hotel demonstrates the unique attributes of this asset including its rich history, 88 well-appointed rooms and the best-in-class amenities. In addition, its prime location and potential value as an Aethos hotel further contribute to its appeal.”
Claudio Sgobba, senior director, debt and structured finance, EMEA at JLL added: “We’re pleased to have supported Limestone Capital on securing this financing solution, which is demonstrative of the depth of liquidity for high quality assets in the hospitality sector despite ongoing macroeconomic headwinds.”
Amadeo Giménez, director, debt and structured finance, EMEA at JLL added: “This financing also shows that interest in the Spanish hotel sector is continuing at an upward trend, with innovative value-add proposals that are committed to expanding the offer within the luxury segment.”