A joint-venture between affiliates of private equity real estate fund managers, UK-based Benson Elliot Capital Management and US-based Walton Street Capital, in partnership with Highgate, a global real estate investment and hospitality management company, (together the “joint venture”), has acquired the Hotel Silken Diagonal in Barcelona, Spain. Located on the Avenida Diagonal, directly adjacent to the Agbar tower in Barcelona’s 22@ district, the full service hotel provides 240 rooms across nine floors.
The hotel was acquired from a consortium of investors led by Oak Hill Advisors. As part of the sale, Highgate will also assume management of the hotel which will be rebranded as the Gates Hotel Diagonal Barcelona, a Highgate independent brand. The deal represents the second hotel transaction between Benson Elliot and affiliates of Walton Street following the purchase of an approximately €420m portfolio of eight hotels in October 2015.
Benson Elliot is familiar with the 22@ district of Barcelona, regarded as one of Europe’s most important urban regeneration projects, having invested in and realised the Granada 150 site and Cornerstone Poblenou office development within the last two years.
Trish Barrigan, Benson Elliot Senior Partner, said: “We have built a strong track record in the hotel sector and believe the Barcelona market will continue to strengthen, supported by strong local fundamentals and a buoyant tourism market. Furthermore, this transaction provides us with a rare and compelling opportunity to acquire a hotel unencumbered by brand and management.”
Robert Bloom, Walton Street Senior Principal, said: “We are pleased to extend our existing partnerships with both Benson Elliot and, long-time partner, Highgate in the acquisition of the Hotel Silken Diagonal. The Barcelona market features compelling supply and demand fundamentals which should further support our investment thesis over the next several years.”
Steve Barick, Highgate Chief Operating Officer, said: “The Hotel Silken Diagonal is located within the broader 22@ development district, a major regeneration project converting industrial land into an innovative business, residential and commercial district including major public infrastructure projects. The asset is well located in this rapidly changing area of Barcelona, an already high growth European market. We look forward to our continued partnership with Benson Elliot and Walton Street.”