Azora has completed the acquisition of two hotels in Portugal’s Algarve region for €148 million from Minor International.
The deal is on behalf of its Azora European Hotel and Lodging Fund and includes a 20-year sale and manage back arrangement.
The Tivoli Marina Vilamoura resort and the Tivoli Carvoeiro resort will continue to be operated by NH Hotel Group on behalf of Minor International under the Tivoli brand.
Thailand-based Minor International bought NH Hotel Group for €2.3 billion in October 2018.
The transaction means that Azora has now committed over €680 million (€305 million of equity) on behalf of the fund which achieved a €680 million first close in summer 2020 and follows Azora’s recent acquisition of the Giverola Resort, in Spain’s Costa Brava, earlier this year. The fund was launched in July 2020 with a seed portfolio of 10 hotel assets and 4 urban ho(s)tel assets across Europe.
“We have a strong conviction that there will be a strong post-pandemic recovery in the European hotels and leisure sector, with significant pent-up demand following long periods of lockdowns and restrictions, particularly in the sun and beach markets,” Concha Osácar, one of Azora’s Founding Partners, said.
“As we emerge into a post-Covid world we have built a strong pipeline of further investment opportunities and are progressing discussions with the owners and operators of some of Europe’s finest hotels, such as the two Tivoli Hotels we are acquiring today, with many of owners seeking to recapitalise and work with a landlord like Azora that understands the dynamics of the sector and can be a long-term partner.”