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."
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