Archer Hotel Capital, owned by Singapore GIC’s sovereign wealth fund and Dutch pension fund APG, joins the big race for luxury in Madrid. Vehicle Commissioned two-stage comprehensive rehabilitation of the legendary Hotel Palace It is located in the Plaza de Neptuno in Madrid, which it owns. The reform project is run by Arcadis. project Manager, Ruiz-Larrea as architectural team and Lázaro Estudio for interior design. The first phase will consist of renovating the rooms and common areas and retouching the façade; According to private sources from the hotel market, confirmed by EL PERIÓDICO DE ESPAÑA. The project also includes rehabilitating and strengthening the structure and cleaning the glass of the iconic dome of La Rotonda restaurant.
The Madrid City Council Transparency Portal reveals that Miguel Díaz Martí and Gorka Álvarez Ugalde, both representatives of Ruiz-Larrea Arquitectos, met with Consular staff in January of this year to draft the reform plan. Included in this meeting were Myriam Inmaculada Peón, Director of the Activities Agency; Daniel González Guerrero, advisor to the Urbanism Cabinet, and Hugo Adolfo Moreno, the director of the same Cabinet. Although the meeting minutes included “presentation of the portfolio of ongoing works in Madrid” as the subject, just talked around the hotel complex.
The project is not easy. Located at number 7 of the Plaza de las Cortes, the property has been classified as “unique” and culturally interesting by the General Urban Planning Plan, the norm that has governed urban planning in Madrid since its approval in 1997. Hotel Palace has now changed its name. Westin Palace has the following features: Same degree of protection as other monuments such as the Royal Palace, the Almudena Church or the Puerta del Sol Building Complex. “With an extensive catalogue, the property will be upgraded with the utmost care, extreme care in its architecture, environmental sustainability elements and careful interior design and improvement of its spaces. Madrid City Council Urban Development Government Area delegate Mariano Fuentes said: vertical gardens, new roofs and high-quality tourism. common areas and inner courtyards through new uses responding to the demand it requires.”
five star complex It has 470 roomsHosting the great names of contemporary history such as García Lorca, Unamuno, Einstein, Michael Jackson, Picasso or Dalí. It was built in 1912 on the site of the Palace of the Dukes of Medinaceli before it was demolished, making it the third hotel to open in the capital, behind the Ritz and Paris. Years later, he would become the command post that deployed the failed 23F coup, or the hero of iconic photos of Felipe González celebrating his first election victory.
Westin Palace is owned by Archer Hotel Capital, one of the companies that revolutionized the luxury hotel market. in 2021 Archer paid 205 million euros for Hotel EditionA newly transformed community by KKH Property. Coincidentally, it took advantage of the pandemic as there was a 220 million buyout deal in February 2020, but didn’t shut down the operation until a year later, a 7% reduction compared to what was originally agreed. Still, he paid more than 1 million euros for each of the Edition rooms, a record in the Madrid hotel market. Archer also owns a luxury hotel, Hotel Arts, in Barcelona. The Fund purchased the palace in 2006, the same year as the Palace. The investment philosophy is clear: they buy the best assets, known in real estate jargon as ‘trophy assets’, with long-term prospects.
race for luxury
At the beginning of the 20th century, King Alfonso XIII commissioned the construction of the Palace so that Madrid could increase its accommodation offer for high society. The same situation is repeated a hundred years later. Large corporate funds entered a race to own the best luxury hotel in the capital.. Mariano Fuentes assures that “it is important to promote quality tourism and maximize the quality of all businesses” and for this “work with the industry to facilitate their work and become investment recipients for the opening of new businesses”. highest quality”.
The penultimate company to join was Socimi Millennium Hospitality, which is 50% owned by the US fund Castlelake and other national funds such as Mutualidad de la Abogacia. In July of this year, the listed company closed its purchase of the building located at Calle Zorrilla 19 next to the Congress of Deputies to turn it into a five-star hotel. This isn’t his only operation, it’s his last. Previously, Announced another listing at 26 Calle Alcalá, operated by Nobu and JW Marriott in Carrera de San JerónimoIt will open its doors before the end of the year.
Aforementioned Another of the recently renovated complexes is the Ritz.. Olayan, the investment holding of the Saudi Royal Family, bought the hotel from the Mandarin Oriental chain for 130 million Euros in 2015. From the beginning of 2018 to 2020, it was renovated by Spanish architect Rafael de La-Hoz with a budget of over 100 million euros. The reform of the Ritz is accompanied by the reform of the Four Seasons, Rosewood Villa Magna or Edition, the latter also responsible for Ruiz-Larrea.
It’s also legendary metropolitan buildingOne of the most emblematic of Madrid’s Gran Via, it will soon become a 6,000 square foot luxury complex with a hotel, restaurants, a spa and a private club. The sponsors of the project are the Paraguas hotel group founded by Sandro Silva and Marta Seco and its Turkish partner Doğuş Group.
hotel investment
In the first half of 2022, Hotel investment in Spain reached 1,521 million Euros in 68 operations, 873 million of which were for urban complexes. This is the third best period since 2017. The most notable operation was Brookfield, which bought Hotel Princesa Plaza from Colony Star. Also, ASG sold Hard Rock Hotel Madrid for 65 million and Ibervalles bought Via Castellana from Millennium for 43 million. Madrid’s luxury is encoded in 35 hotel complexes with a total of 5,691 rooms.. According to consulting firm Colliers, the pandemic has increased investment interest in luxury, from 20% of the investment market to 35%. In 2021, 43% of the capital allocated by institutions went to five-star and five-star ‘grand luxury’ establishments.
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