Principal Real Estate, acting via Hotel Real Estate Fund II, has acquired the Ona Hotel Terra in Barcelona for €40.5m. The vendor is a local real estate developer. The 3* hotel offers 152 rooms, a restaurant, a bar, 2 meeting rooms as well as a rooftop terrace with swimming pool offering exceptional views over Plaza de Espana and Palace of Montjuic. As part of the transaction, a long-term lease was entered into with Ona Hotels, a family-owned Spanish hotel group based in Barcelona which operates 40 hotels in 4 countries (Spain, Andorra, Morocco and Tunisia) with c. 5,500 rooms.
Jochen Schaefer-Suren, CEO of Principal’s Hotel and Leisure division, commented: “The Ona Hotel Terra in Barcelona is an exciting investment for our Hotelfund II as it is a very attractive value-add opportunity in particular as the hotel development moratorium in Barcelona should constrain supply and provide a unique opportunity to benefit from future demand growth to all existing hotels including our new hotel in Barcelona. It is a perfect illustration of the type of value add hotel investments Principal is looking for after the successful sale of the hotel portfolio in Hotelfund I led all but of one of our investors in Principal hotel fund II to give us this further vote of confidence with over €100m additional equity. This allows us to look for further hotel investment for Hotelfund II of over €400m in 2020 and beyond.”