Spain-based resort owner Hotel Investment Partners (HIP) has signed an agreement with Room Mate Hotels to manage the new Pax Barracuda hotel in Palma de Mallorca. The agreement involves the Calviá Dreams and Barracuda hotels, which HIP will transform into one property by investing €23 million in a refurbishment and repositioning project.
The opening of the property will mark Room Mate Hotels' debut in hotel resort management.
"Entering the resort sector with HIP in a place like Mallorca is a surefire recipe for success for our first beach hotel," said Room Mate CEO/Founder Kike Sarasola. "With this investment we are making a bold commitment to the Magaluf area, as so many other great chains have done, including the Escarrer de Meliá family. Our guests wanted Room Mate to open a beach hotel, so we're going to take them by surprise once again."
HIP's strategy for assets such as these large-scale properties with prized locations is to create value via an investment and management plan designed to reposition the hotel on the market, according to the company.
To be known as Pax Barracuda, the 391-room property will open in April 2020 following 18 months of renovation that will add several suites and junior suites. The complex will get a new building with 22 guestrooms, while the main building will get an additional 18 rooms.
The new Room Mate Hotels beach complex will cover 39,481 square meters, with the full plot taking up 19,665 square meters. The property will include several restaurants, a gym, a kids club and a pool. The rooms and communal areas were designed by Barcelona interior designer Jaime Beriestain.
In a statement, the company said that the hotel would "target guests with a medium-high purchasing power, including families." The rebranding process would also change the hotel's marketing strategy, "which aims to reduce the number of guests who come via tour operators."
Hotel Investment Partners' portfolio comprises 62 hotels and more than 18,000 rooms. The company primarily reflags and updates existing hotels which are then operated under management contracts by brands such as Melia, Ritz-Carlton, Lopesan and Barceló.
Room Mate Hotels, meanwhile, has 26 properties and 1,800 rooms in its portfolio and a further 11 hotels in the pipeline.