The Student Hotel (TSH) has secured €90m in financing for the development of two new hotels in Madrid and Barcelona, as well as refinancing for its existing assets in Spain. The lending was provided by a syndicate of three banks: Santander, Sabadell and HSBC. The financing package forms part of a €2bn accelerated investment programme by Amsterdam-headquartered TSH across European markets over the next five years, that is expected to result in the Spanish market growing in value to about a quarter of its operating portfolio, from 10% currently.
Lucas Rijckmans, Chief Corporate Services at TSH, said: “Spain is a key target market within The Student Hotel’s European expansion strategy, due to its increasing attractiveness as an international student base and its draw as a major tourist destination. A growing number of academic exchange and summer school programmes is further driving the demand for high-quality short-stay student accommodation, particularly in Madrid and Barcelona, where there is a severe shortage of supply. By mid-2021, we expect our total Spanish investments to exceed €200m.”