Meliá and the Abu Dhabi Investment Authority (Adia) are reportedly closing in on a deal to create a new joint venture in Spain with €1 billion of assets under management.

According to Spanish publication El Confidencial, assets will include the Equity Inmuebles 17-hotel portfolio valued at €700 million as well as Meliá's Calviá Beach project, which includes seven properties at around €300 million.

Last year CoStar News reported that the Equity Inmuebles portfolio was up for sale and that Adia had emerged as a buyer.

Hospitality Investor approached both Adia and Meliá. Adia declined to comment and Meliá did not respond,