Eurostate, privately held real estate managers with head offices in Barcelona, has signed a collaboration contract with a private hotel investment fund, participated by one of the largest sovereign funds, to purchase boutique hotels in the principal cities in Spain and main capitals in Europe.
The collaboration is focused on the development and reconversion of emblematic buildings, the acquisition of existing hotels, strategic alliances with local hotel groups and franchise contracts with own luxury brand name. Eurostate points out that its previous experience in luxury hotel development has been relevant to apply their business model that covers portfolio management and private equity management. The fund has reserved approximately 150 million private equity to invest in the forthcoming years.
Despite the difficult moment that currently beats the tourist and real estate sector, Steven Zijl, founder and CEO of Eurostate, confirms that it is a key moment to anticipate anticyclic on possible acquisitions, supported by a solvent group. Additionally, willing to associate with hotel property owners combining experience, operational management, professionalism and liquidity. Nevertheless, he adds, "the past period of historical maximum asset values is still very recent. However, when leverage, revaluation and potential overvalues are reducing significantly, the target must be focused on additional values, the analysis of real demand, a quality concept, private equity and off course the selection of a good location. Critical points in investment and the creation of luxury urban hotels," he concludes.