Covivio, through its 52.5%-owned subsidiary Covivio Hotels has acquired four-star Iberostar Las Dalias in Tenerife from a controlled affiliate of Starwood Capital for €81 million.
Located on Calle Gran Bretaña on the Adeje Coast, the hotel comprises 429 rooms, a restaurant, three bars, three swimming pools, a gym, squash and volleyball courts, as well as two meeting rooms for up to 140 people. It was built in 1985 and refurbished in 2021.
With a stabilized yield of 6.75 per cent, the hotel is let to Iberostar on a firm triple-net lease until 2041.
Covivio increased its stake in subsidiary Covivio Hotels by 8.7 per cent to 52.5 per cent in early 2024, and the acquisition of the Iberostar Las Dalias is Covivio’s first purchase of hotel properties since 2020. The buy is a continuation of its plan to strengthen its exposure to the hotel sector, particularly in the Southern European leisure segment.