Benson Elliot Capital Management and Walton Street Capital entered into a joint venture, in partnership with Highgate, to acquire the Hotel Silken Diagonal in Barcelona. The nine-floor, 240-room hotel is located on the Agenda Diagonal, adjacent to the Agbar tower in Barcelona’s 22@ district.
The hotel was acquired by the partnership from a consortium of investors led by Oak Hill Advisors. As part of the sale, Highgate is assuming management of the hotel, which is being rebranded as the Gates Hotel Diagonal Barcelona, an independent brand from Highgate. This will be the second hotel transaction between Benson Elliott and affiliates of Walton Street following the purchase of a portfolio of eight hotels in October 2015, worth an estimated $490 million.
Benson Elliott previously invested in the Grenada 150 site and Cornerstone Poblenou office development in Barcelona’s 22@ district, exemplifying their familiarity with the area. These investments took place within the last two years, and the 22@ district is regarded as one of Europe’s largest urban regeneration projects taking place.
“The Hotel Silken Diagonal is located within the broader 22@ development district, a major regeneration project converting industrial land into an innovative business, residential and commercial district including two major public infrastructure projects,” Steve Barick, COO of Highgate, said in a statement. “The asset is well located in this rapidly-changing area of Barcelona, an already high growth European market. We look forward to our continued partnership with Benson Elliot and Walton Street.”