Spain's Merlin sells 19 hotels to Foncière des Murs

Two-year-old Spanish REIT Merlin has sold a portfolio of hotels located primarily in Barcelona and Madrid to a subsidiary of Paris' Foncière des Murs. According to the French company, the deal represented an investment of €542 million.

Foncière des Murs sought the portfolio to gain a foothold in the "fast-growing" Spanish market, which the company said in a statement is the third most popular tourist destination worldwide. "The strong growth of the tourist and business clientele, particularly in Barcelona, which is now continental Europe's foremost destination for business seminars, makes it possible to envisage a further increase in RevPAR of 8 percent in 2017," the company claimed. 

The portfolio acquired by Foncière des Régions consists largely of centrally located midscale and upscale hotels, including the Barcelo Torre de Madrid, the NH Collection Colon in Madrid, the Eurostars Gran Marina and the AC Forum in Barcelona.

Virtual Event


Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

The hotels are leased under fixed- or guaranteed-rental leases to major names in the Spanish hotel industry such as Melia, Hotusa, Barcelo and NH. In total, the portfolio represents 3,800 guestrooms. 

As part of this transaction, Foncière des Murs, a branch of Foncière des Régions, is planning a capital increase of around €200 million over the first half year with preferential right of subscription being maintained. The acquisition is being financed in cash and by a new debt over eight years at a cost of around 1.85 percent. 

Suggested Articles

The absolute occupancy and RevPAR levels were the lowest for any Q3 in STR’s U.S. database.

Implementation of Volara’s contactless guest engagement and touchless room controls system is part of a rollout by Viceroy Hotels & Resorts.

U.S. hotel occupancy was virtually flat at 50.1 percent during the week of Oct. 11-17, according to the latest data from STR.