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Insight Comment |
Spanish REIT Millenium Hospitality Real Estate has closed on a deal to buy an office building in Madrid for €36.7 million with the aim of converting it to a luxury hotel.
The building is located on the junction of Calle Alcalá and Gran Vía, according to Hosteltur, which reported the news.
Millenium's strategy is "based on generating value by acquiring hotel assets that will be transformed and repositioned as 4- and 5-star hotels."
In July last year, US investment firm Castlelake announced a deal to acquire up to 49.9% of the shares of Millenium Hotels.
"Through our investment in the Millenium platform, we aim to enable Castlelake's investors to obtain exposure to high quality assets in prime Spanish locations while opportunistically participating in the tourism sector's recovery from the COVID-19 pandemic," Evan Carruthers, managing partner and chief investment officer of Castlelake, said at the time.