Landmark luxury hotel the Four Seasons in Madrid has been refinanced, in a major vote of confidence in the segment, and the city.
A complex transaction was headlined by the EUR330 million refinancing package, provided by Generali Real Estate. International law firm DLA Piper was on hand to advise the lender. For Generali, it was the company’s largest such loan to date, delivered via its commercial real estate debt platform. Stefano Lombardo, head of debt funds of Generali Real Estate Sgr described the loan as “transformational”.
A Realignment of Interests
The deal also involved a realigning of ownership interests at the development. The hotel, which opened in autumn 2020, was developed alongside retail space and a parking garage, by project partners Mohari Hospitality and OHLA.
The refinancing allowed for the two companies to split out their interests. Mohari Hospitality has taken full control of the Four Seasons hotel, along with retail space occupied by Hermes, and the underground car park. OHLA, for its part, will retain the Galería Canalejas shopping centre, and another main car park.
The opening of the Four Seasons has helped raise the profile of Madrid, among high spending travellers. And many other major hospitality brands are now moving to gain a presence in this luxury marketplace. As in so many other markets, luxury hotel brands are also looking to the opportunity afforded by branded residences, too.
In the coming months, Ennismore’s SLS brand will make its residences debut in the city. SLS Madrid Infantas Residences will see the transformation of a 1920s building into 33 luxury apartments. Mandarin Oriental Residences Madrid is also entering this space, with 27 apartments in a seven storey block in the Salamanca neighborhood.
Asia’s Banyan Tree has chosen Madrid as its European launch pad for branded residences. It has launched a project in the Salamanca district that will have 24 exclusive condominiums, restoring a building dating from 1948. The largest of the units has been priced at more than EUR16 million.
Also close to opening is Nomade Temple Madrid, a five star makeover of the former hotel Iberostar Gran Vía Las Letras. And Nobu Madrid is set for a summer opening, with a city office building converted to create a 50 room hotel.
Madrid Adds Cool Style
And a city can surely be thought of as cool, if it has a Soho House members club as a destination. Sure enough, Soho House Madrid will open in early 2027, a combination of two properties that will create a club and 55 room hotel. And another conversion in the city will see the landmark Generali Building turned into a 154 room hotel. The luxury property will be launched in late 2027 as the Radisson Collection Edificio Generali.
IHG is also actively pursuing opportunities to add brands in the city. In 2028, it will open a Kimpton branded hotel in Salamanca, with two existing buildings being combined and converted to create a 111 room property.
