Meliá Hotels International sold seven of its largest resort hotels in Spain to Starwood Capital Group for $196 million. According to a binding agreement, a controlled affiliate of Starwood Capital Group will take a majority stake in seven hotels currently fully owned by the Spanish hotel company. The final completion of the transaction is subject to the final approval of bank financing, and clearance to be obtained by the EU Merger Control Office.
The assets will be held by a new joint venture company in which a controlled affiliate of Starwood Capital owns 80 percent and Meliá 20 percent. The agreement also includes the continued management of the properties by Meliá under the Sol Hotels brand.
The deal between Starwood Capital and Meliá Hotels International marks the beginning of a fruitful relationship as part of a plan announced a few months ago to transform and reposition the Sol Hotels brand, which includes a large number of the company’s resort hotels.
The seven hotels included in the deal represent 2.933 keys, comprising the Sol Príncipe in Malaga, the Sol Lanzarote and Meliá Gorriones (Fuerteventura) in the Canary Islands, the Sol Ibiza and Sol Pinet Playa in Ibiza and the Sol Mirlos and Sol Tordos (Palmanova, Mallorca). The hotels will all be fully refurbished, the two companies having designed a joint investment plan starting this winter that will see the renovation of hotel facilities and their adaptation to the new Sol Hotels product and service standards to bring about their immediate repositioning and provide a better response to the needs of modern leisure travellers.