ASG Checks Hampton by Hilton in to €40 Million Hotel Project in Barcelona
Delivery of the 242-room hotel is scheduled for early 2021
BARCELONA - ASG, which targets special investment opportunities in German and Spanish real estate, has checked Hampton by Hilton in to a new 242-room hotel that will be built in Barcelona. It is the third investment to date in Spain’s dynamic hotel sector by ASG funds.
Hampton by Hilton Barcelona Fira Gran Via will operate under a franchise agreement with Borealis Hotel Group, which has signed a long lease to operate the new hotel. ASG will build the property opposite the Fira de Barcelona conference center in the Plaza Europa business district. Construction work has started and ASG is scheduled to deliver the new hotel in the first quarter of 2021. The entire project is projected to cost approximately €40 million.
Saul Goldstein, ASG’s founder and managing partner, said: “Helping strong operating brands establish a footprint in the highly attractive Spanish market is a feature of our hotels strategy. It builds on the successes of our local team in unearthing opportunities in top locations in Spain with a shortage of hotel rooms. We have a good pipeline of projects and expect to make fresh announcements in the coming months as our hotel strategy gains momentum.”
Hard Rock International signed in October for a hotel that ASG created by converting an obsolete office building in Madrid’s museum district. ASG is also upgrading a hotel in the historic center of Málaga to reposition it for the luxury segment of the market. The Hampton by Hilton Barcelona development is an investment by ASG’s Iberia Fund I.
Barcelona’s climate, cultural heritage and excellent transport links have made it one of Europe’s most visited cities by tourists after London and Paris. The city is a major destination for meetings, incentives, conventions and exhibitions, ranking third globally by number of events after Vienna and Seoul. Barcelona hotel revenue per available room (RevPAR), a key industry metric, has climbed at a cumulative annual growth rate of 6.1% since 2009.
Hampton by Hilton targets the value with quality segment of the business traveler market, with more than 3,000 hotels trading or under development, including Hampton by Hilton Alcobendas Madrid, which is currently under development in Spain’s capital. Amsterdam-based Borealis specializes in hotel investment, development and management, completing more than €3 billion of transactions since 1997 and working with various international hospitality brands.
Brian Betel, managing partner of ASG Iberia, said: “Signing Borealis under the Hampton by Hilton brand is a key milestone for this project. We saw the potential this location would serve for the international conference and exhibitions market because of its location opposite Barcelona’s top conference venue, surrounded by large corporate neighbors and its excellent transport connections - to the airport and the rest of the city.”
Patrick Fitzgibbon, Senior Vice President, Development, EMEA, Hilton said: “Since its arrival in Europe, Middle East & Africa a decade ago, Hampton by Hilton has grown to nearly 150 hotels trading or under development. Barcelona’s enduring appeal as a major destination for conferences and events like Mobile World Congress makes it natural choice for the brand, and we look forward to welcoming guests in 2021.”
ASG is the trading name of Jersey-based private equity investment manager ActivumSG Capital Management Ltd., which focuses on special situations in European real estate markets, primarily in Germany and Spain. It has raised €1.5 billion in initial equity commitments for the five closed-end funds it has established to date. ASG looks beyond direct property investments to access compelling real estate themes, demonstrated by its corporate acquisitions and finance strategies. ASG’s experienced local teams source opportunities across a wide range of sectors with significant underlying value, which they realize through hands-on asset management and crystallize for investors once assets are ready for ownership by global institutions or listed companies. ASG is regulated by the Jersey Financial Services Commission. For more information, visit the website at www.activumsg.com
About Borealis Hotel Group
The Borealis Group was founded more than 20 years ago in 1997 by Bart van de Kamp as a Dutch-based investment, development and management company, focusing on the hospitality and leisure market in major capital cities and airport locations across Europe. The new hotel in Barcelona is its first in Spain as part of a development strategy to expand its operational footprint beyond Belgium and the Netherlands to other European hospitality markets, including France and the Nordics. The Group has all its expertise under the Borealis Umbrella – as real estate investor, long term lessee, contractor and operator. The company is able to move swiftly and efficiently, offering its stakeholders creative solutions and an exceptional set of skills. The team behind Borealis has completed more than €3 billion of hotel related transactions since 1997. For more information, visit the website at www.borealishotelgroup.nl/
About Hampton by Hilton
As the number one ranked lodging franchise for the past 10 years, according to Entrepreneur®, Hampton by Hilton, including Hampton Inn by Hilton and Hampton Inn & Suites by Hilton, serves value-conscious and quality-driven travelers at more than 2,430 properties with more than 250,000 rooms in 25 countries and territories. High-quality accommodations and amenities, such as complimentary WiFi, free hot breakfast, and On The RunTM breakfast bags, contribute to Hampton by Hilton ranking as a leader in its segment. Hampton by Hilton Team Members deliver friendly, authentic, caring and thoughtful service defined as Hamptonality, with guest happiness being the number one priority, backed by the 100% Hampton GuaranteeTM. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits. For more information about Hampton by Hilton, visit www.hampton.com or newsroom.hilton.com/hampton and connect on Facebook, Twitter, YouTube and Instagram.Download Article Photos