Redevco has entered the hospitality space with the acquisition of six properties in Spain and Portugal for 80 million euros ($77.6 million).
The six undisclosed properties will launch Redevco’s “Next Gen Stays” joint venture platform intended to capitalize on the recovery of youth tourism and the experience travel market, according to a news release. The properties to be redeveloped into hotels are in Lisbon, Bibao, Seville, Porto, and Malaga. The company pre-leased the properties to a professional hotel operator at the time of acquisition.
The company is focused on under-exploited real estate with local character and redevelopment potential. It plans to build a 250-million-euro portfolio in the Iberian markets with a like-minded, joint-venture partner before it expands into a pan-European hotel vehicle with an investment volume goal of 500 million to 700 million euros.
The strategy also calls for sustainability and social returns through repurposing architecturally interesting but outdated buildings and upgrading the environmental footprints.