HE lucentum hotel from Alicante I’m looking for a buyer. Millennium Hospitality Real Estate, The listed investment company, which bought the property in 2018, has notified the BME auditor of its intention to get rid of the building it has already purchased. It commissioned CBRE to study the market.
In fact, the company guarantees that it has already received this document. initial offers from potential interested partiesAlthough none of them are binding yet, as outlined in the firm’s first-term management report to the securities market chief.
Lucentum hotel is located in the heart of Alicante, right in front of the Central Market. 169 rooms and this is it operated by euro starsFrom Hotusa Group, Through a contract that obligates the chain to pay a fixed rent to building owners through 2025, a fixed and variable portion will be paid from then on, according to the same documents.
The last annex of this agreement signed in November 2021, allows extension of the lease until 2040, subject to compliance with certain economic conditions. In the hotel industry It is common for the ownership of the building to differ from the company responsible for its management.It usually falls on private chains, so changes in ownership of the property generally do not affect the operation of the property.
Although the amount the owners are asking for the property is unknown, Millennium values the hotel gross (i.e. without deducting debts). 32.3 million euros On their balance sheets.
From bank headquarters to hotel
Property located at number 11 Alfonso el Sabio Boulevard It was originally built as the headquarters of the Bank of Alicante.it was later Absorbed by BBVA. The organization currently headed by Carlos Torres decided to get rid of the building and He sold it to Valencian construction group García Ojeda. The council, then led by Luis Díaz Alperi, was planning to build a conference palace in Benacantil, which led the new owner to convert the building into a hotel to take advantage of the opportunity it would create. new infrastructure in the region.
The congress palace was never built and the crisis left García Ojeda bankruptcy and the closure of the Hesperia-run hotel in 2010. However, the Valencia group retained ownership and the establishment reopened in 2011 and is now under the management of Eurostars. Yes definitely, The debt of the property fell into the hands of Sarebwho sold it to a North American fund. cerberus.
Millenium bought the hotel in 2018. In a three-pronged operation that enabled him to become debt-free for around 14 million euros, according to what was published at the time. Now the company has put up a for sale sign to look for a buyer that will enable it to make its investment profitable.
Guided by Madrid native Javier IlanMillennium Hospitality Real Estate 49.72% owned by Castlelake fund and its most prominent shareholders include the former CEO of Inditex José María Castellano. It currently has 13 hotels in its portfolio in cities such as Madrid, Bilbao, Seville, San Sebastián, Córdoba and Cádiz, as well as Alicante, to which it has allocated a gross value of 632.1 million euros. He earned 5.5 million euros in the first semester.
Source: Informacion
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