Wanda finalizes deal to sell Madrid property

The Edificio España building. Credit: Carlos Delgado; CC-BY-SA

It's done.

China's Dalian Wanda has reportedly finalized a deal to sell a Madrid property it had intended to convert into a luxury hotel, citing uncertainties over Spain's market and the local political environment.

The hotel was sold to Spanish property developer Baraka Global Invest in a deal valued at €272 million euros or $283.15 million.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

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.


News of the sale stretches back to July, when it was first reported that Wanda would be selling the property to Baraka. The reason for the eventual sale has more to do with Madrid's local government than the asset itself, it is believed.

Wanda acquired the the Edificio Espana from Grupo Santander in 2014 for a reported $358.6 million, but by January 2016, Wanda's relationship with the government had soured. Here's the crux, as written by Daily Mail at the time:

    "Madrid's new anti-austerity mayor Manuela Carmena has put investors on edge by vowing to sternly scrutinize big building projects approved by the former conservative council.

    According to Spanish reports, city authorities are refusing to let Wanda demolish the building's facade before reconstructing it.

    Citing Spanish media, the state-run Global Times newspaper, said Wanda has started dismissing employees in its Madrid office after talks with the city government failed.

    "I have never been so badly treated in my life," Wang was quoted as saying by Spanish news website Periodista Digital. "I've been treated like a dog."

Wanda now says it will use the funds from the sale to repay loans and finance other projects. It said it had not yet identified any specific potential targets for investment.

Parent group Dalian Wanda owns more than 200 plazas and hotels across China, and has in recent years gone on an overseas acquisition spree which also includes a stake in Spanish football club Atletico Madrid and hotels and land in the U.S. and Australia, among other destinations.

Suggested Articles

The companies are working to develop a new hotel gym experience.

The Hotel Kansas City plans to use Knowland’s data to find accounts both in its market and in competitive markets to drive new business.

The total U.S. hotel construction pipeline at the end of Q3 2020 was down 7 percent by projects and 6 percent by rooms year over year.