Mazabi, the firm that manages the assets of 40 family offices, plans to invest 200 million in the medium term in hotels with good locations, taking advantage of the opportunities that the sector will generate due to the impact of Covid-19 and the companies’ need for liquidity.
Mazabi, which currently has some 420 million euros invested in hotels, owns a total of 11 hotels and three in the process of investment in Spain, representing 25% of its total assets.
As the company explains, its strategy involves seeking new opportunities in both holiday and urban locations in squares such as the Balearic Islands, the Canary Islands, the Costa del Sol, Cadiz, Madrid, Barcelona, Seville, Malaga, San Sebastian, Bilbao and Valencia.
In this sense, the real estate asset manager has recently completed the acquisition of the future Hotel Regatas in Santander, an establishment that will have 64 rooms and is undergoing renovation.
Among the hotel assets of the manager are also the Hostal Room007 (Madrid), also undergoing renovation, the Iberostar Costa del Sol (Estepona), the Club Hotel Tropicana (Mallorca), the Iberostar Santa Eulalia (Ibiza), the Conil hotel Park (Cadiz) and the LH San Onofre Hostel (Madrid). In addition, Mazabi has a hotel under construction in Menorca.
The company’s growth plan is to be strengthened in different locations with the aim of reaching 2,000 million euros in assets under management at the end of 2020, compared to 1,500 million at the beginning of the year.
The expected growth will not only be in Spain, but different strategic locations in Europe will be added.
Mazabi CEO Juan Antonio Gutierrez explains that although the current situation caused by the pandemic has slowed Mazabi’s investment options, it has also created an opportunity to continue with its long-term growth strategy.
For this reason, the company plans to grow both with purchases and with contributions from third parties to Silicius, the Socimi managed by Mazabi.
“We want to complete our hotel portfolio in strategic and diversified locations. The relationship with hotel operators is very close and these days we have sought to help and understand the situation in the sector and strengthen the long-term relationship with them,” adds Gutierrez.
One of Mazabi’s most staked portfolio assets is the Hotel Teatro Albeniz, a five-star establishment with 115 rooms located in the historic center of Madrid. The asset is currently undergoing conditioning and rehabilitation works.
“Due to the current situation, at the moment there is no scheduled opening date, although it is being considered for late 2020 or early 2021,” says the company.