Ricardo Urgell, the founder of Spanish-based nightclub company Pacha Group, has reportedly sold his company to global private equity firm Trilantic Europe for €350 million. Curiously, amid the rumors of the sale, the Times UK is reporting Pacha may be expanding outside its nightlife niche with 25 hotel and spa resorts.
The news has yet to be officially announced by a Pacha representative, but in an interview with Diario de Ibiza, Urgell discussed the deal and said that the sale of his family-grown business “hurts” but is a “reality.”
The sale includes all of the Group's assets, Urgell said, with the Pacha nightclub, the Hotel Pacha, Lio cabaret club restaurant, Destino Pacha Ibiza Resort, international and national franchises all going to Trilantic Europe.
Still, it’s worth noting that the deal has not been confirmed, and Urgell did indicate that he might pull out of the agreement. "There must always be a certain suspense to these things," he told the Spanish paper. According to the interview, the asking price for the company was lowered from €500 million.
According to The Times UK, Pacha is looking to expand its hotel business beyond its one Ibiza property. The company is reportedly scouting locations and partners and is looking to open six hotels by 2020, and the rest by 2025. The hotels will target a "new young generation" between the ages of 38 and 45. According to the paper, this generation has "more money than millennials and more experience."
The hotels and spas will be franchised to local partners, but the Pacha Group will reportedly have a brand manager to maintain brand standards.
No word yet on how the potential sale will affect these plans, or if Trilantic Europe will continue to grow the Pacha hotel brand.