In a transaction that underscores the robust appetite for Spanish hospitality assets, Atom Hoteles SOCIMI has sealed a €50m deal to sell its flagship Exe Rey Don Jaime hotel in Valencia to Genefim, the real estate investment arm of Société Générale Group. The sale represents a strategic pivot for Spain's pioneering hotel REIT as it fine-tunes its portfolio amid surging institutional demand for prime hospitality real estate.
The 14-storey trophy asset, commanding Valencia's skyline adjacent to the Turia Gardens and minutes from the City of Arts and Sciences, spans approximately 25,000m² and houses 319 rooms alongside ten meeting spaces, an outdoor pool, and a rooftop terrace. What makes this transaction particularly compelling for investors is the asset's proven resilience model - the property will continue under the operational expertise of Eurostars Hotel Company (Hotusa Group), ensuring revenue continuity that savvy institutional buyers increasingly demand in today's volatile market.
The timing of Genefim's acquisition signals a broader institutional confidence in Spain's hospitality recovery trajectory, with international banking giants now viewing Spanish hotel assets as defensive plays with upside potential. This marks Atom's eighth divestment since reaching its portfolio peak of 32 hotels worth over €1bn, demonstrating the disciplined capital allocation that has attracted more than 800 shareholders to the platform since its 2018 launch by Bankinter Investment and GMA.
For astute developers and investors, the transaction reveals a critical market dynamic often overlooked - the emergence of sale-and-leaseback structures as the preferred vehicle for hotel asset monetisation. While headlines focus on acquisition prices, the real story lies in how established operators like Eurostars are securing long-term operational control, creating a new class of hospitality investment that combines real estate stability with operational expertise.
Atom's remaining portfolio of 24 hotels totalling nearly 6,000 rooms and valued at €858m, now sits strategically positioned across Spain's most sought-after urban and resort destinations, leased to premium operators including Meliá, Marriott, Hyatt, NH, and Ilunion. The selective rotation strategy has proven GMA's asset enhancement capabilities while capitalising on what industry insiders describe as the most buoyant Spanish hotel investment market in over a decade.
The Valencia disposal reinforces a fundamental shift in European hospitality investment, where institutional capital is no longer simply buying buildings but acquiring proven operational ecosystems - a trend that positions Spain at the forefront of the continent's hotel investment evolution.
Companies and Their Roles:
- Atom Hoteles SOCIMI - Spain's first hotel-owning REIT, seller of the Valencia property
- Genefim - Real estate investment arm of Société Générale Group, buyer of the hotel
- Société Générale Group - French banking giant, parent company of Genefim
- Eurostars Hotel Company - Hotel operator continuing to manage the property
- Hotusa Group - Parent company of Eurostars Hotel Company
- Bankinter Investment - Investment banking arm that co-founded Atom Hoteles
- GMA - Real estate asset manager and co-founder of Atom Hoteles
- Meliá - Hotel operator in Atom's remaining portfolio
- Marriott - Hotel operator in Atom's remaining portfolio
- Hyatt - Hotel operator in Atom's remaining portfolio
- NH - Hotel operator in Atom's remaining portfolio
- Ilunion - Hotel operator in Atom's remaining portfolio
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