Archer Hotel Capital buys Madrid EDITION hotel
The stunning EDITION Hotel Madrid recently changed hands. (Caption: Aura Real Estate)
Asian-Dutch investment group Archer Hotel Capital adds third 5-star hotel to its Spanish portfolio with the purchase of Madrid EDITION.
Singapore and Amsterdam-based investment fund Archer Hotel Capital has added another 5-star property to its stock in Spain.
The group bought the Madrid EDITION from KKH for €220m and the property will open in May 2021.
We find out more about this exciting acquisition.
Luxury hotel fund invests in Spain
Archer Hotel Capital, an investment firm owned by the Singapore’s GIC Real Estate and Dutch company APG, has purchased the Madrid EDITION hotel from Catalan company KKH Property Investors for the hefty price tag of €220m.
The hotel will be the second EDITION hotel in Spain, joining the Barcelona hotel also operated by the Marriott brand.
It will be Archer Hotel Capital’s second property in Madrid along with the Westin Palace Madrid, and their third in the country, following the Hotel Arts Barcelona.
KKH is currently developing the hotel, which is located within the historic Monte de Piedad building on the Plaza de las Descalzas, and once the development is complete, the hotel will open to the public in 2021.
Dominic Seyrling, director, investments, Archer Hotel Capital, commented on the purchase, saying, “We are delighted to have found an agreement with KKH for the acquisition of our second property in Madrid. KKH has put together an attractive scheme, and we are confident the Madrid Edition will be one of the most exciting hotel openings across all of Europe in 2021.”
Archer Hotel Capital expands in Europe
Archer Hotel Capital was formed last year to develop a European portfolio of hotels. Currently, the group has 11 properties in key destinations in Western Europe, all of which were previously under the umbrella of the Host Hotels & Resorts European joint venture. Archer Hotel Capital’s stock of hotels rounds up to a tidy €2.1bn and has a combined key count of over 4,000.
Robert-Jan Foortse, head of European real estate for APG, said, “We believe that European hotel real estate provides a compelling investment case for us, and for our pension fund client ABP, and we are pleased to have secured the opportunity to increase our exposure to a portfolio of institutional quality assets in prime locations across the continent.”
“We believe that Archer Hotel Capital will be uniquely positioned in a European context, with its long-term horizon and high-quality capital sources allowing it to unlock complex investment and value enhancement opportunities,” he elaborated.