Alternative investment vehicle led by Bankinter, GMA and Meliá delivers a powerful 25% unlevered IRR through strategic divestments in Zaragoza and Palma
Victoria Hotels & Resorts, the hotel-focused investment platform promoted by Bankinter Investment, GMA and Meliá Hotels International, has closed the sale of two of its flagship urban properties, Innside Zaragoza and Innside Palma Bosque, for a combined €74m, marking a 95% capital gain over their initial value. The sale was enabled through pre-agreed purchase options with Meliá Hotels International, embedded into the vehicle at its launch in June 2021.
The transactions generated a combined unlevered internal rate of return (IRR) exceeding 25%, far surpassing the vehicle’s target of 9% leveraged returns. While the Zaragoza asset was acquired by a private investor, the Palma Bosque hotel was purchased by a joint venture between Meliá and an institutional partner, underlining the brand’s dual role as both operator and investor.
“The divestment of these two assets generates significant capital gains for the alternative investment vehicle and its investors,” the group stated. The assets, Innside Zaragoza with 102 rooms and Innside Palma Bosque with 262 rooms, total over 17,000 m² and have been repositioned through active asset management led by GMA. More than €125m was invested across the portfolio, showcasing the success of value-add strategies in lifestyle-oriented urban assets.
In a market that increasingly values experiential hospitality and operational resilience, Victoria’s playbook provides a proven model, secure location, robust brand alignment, professional asset management and structured exit strategy. What is particularly noteworthy for developers and institutional investors is the clarity and foresight embedded into the vehicle from day one, purchase options, defined timelines, and an operator-partner who remains post-sale.
Beyond this latest sale, Victoria Hotels & Resorts retains a valuable portfolio of six hotels in prime Spanish resort locations, including Gran Meliá Victoria in Mallorca and Paradisus Las Salinas in Lanzarote. These assets are expected to benefit from further repositioning and potentially similar value uplift, presenting compelling reinvestment opportunities for current and prospective stakeholders.
As the European leisure and urban hospitality sector continues to rebound and evolve post-pandemic, with a focus on hybrid travel and ESG-aligned operations, the success of this divestment underscores the enduring value of professionally managed, experience-led hotel assets. Investors and developers looking to future-proof their portfolios would do well to study the Victoria model.
Companies mentioned:
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Victoria Hotels & Resorts – alternative investment vehicle
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Bankinter Investment – co-promoter, financial partner
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GMA – asset manager
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Meliá Hotels International (MHI) – operator and joint investor
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Sociedad Lierinto – owner of Innside Palma Bosque
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