Thai group Minor International has sold two hotels in the Algarve – Tivoli Marina Vilamoura and Tivoli Carvoeiro – to Azora European Hotel & Lodging, an investment fund managed by Spain-based real estate investment manager Azora Géstion.
The deal has been completed for €148 million, Minor International announced on Wednesday.
Both hotels will maintain their Tivoli brand and continue being managed by Minor through the NH Hotel Group (NHH) for 20 years, with an option to extend to a total term of 30 years.
The transaction has generated a “€26 million net gain in asset sales”, said the group, which purchased 14 Tivoli hotels from Grupo Espírito Santo (GES) in 2016 for €294 million in what was described as the “largest hotel deal ever in Portugal”.
“This deal reiterates the combined strength of Mint and NHH in the execution of another strategic asset rotation with a respected institutional real estate investor in Europe, following the sale-and-leaseback of the NH Collection Barcelona Gran Hotel Calderón last month,” said Dilip Rajakarier, CEO of Minor International.
He added: “The transaction further enhances the overall return of the Tivoli portfolio.”
Meanwhile, one of the founding partners of Azora expressed her “serious conviction that there will be a profound post-pandemic recovery in the European hotel and leisure sector, which has seen its demand significantly repressed after long periods of restrictions, especially in sun and beach markets.
“As we emerge into a post-Covid world, we build a strong pipeline of new investment opportunities and are promoting talks with owners and operators of some of the best hotels in Europe, such as the two Tivoli hotels we purchased today (Wednesday),” said Concha Osacar.
“This purchase represents a rare opportunity to purchase two prestigious and well-managed hotels for an attractive price, which we believe will allow us to create long-term value for our clients,” she added.
During Minor International’s ownership of the two hotels, Tivoli Carvoeiro underwent a major facelift which bumped it up to a five-star status and included the opening of a new restaurant and a rooftop Sky Bar.