Starwood Capital Group announced the launch of a joint venture with HI Partners. The newly established company will invest as much as 500 million euro into Spanish hospitality industry over the next three years. Starwood will own a 70% stake of the company, while HI Partners will own a 30% stake. HI Partners is owned by Banc Sabadell, the fifth largest Spanish banker. This company will act as manager of the newly formed joint venture.
The primary goal of the company will be to invest into 3- and 4-star hotels with more than 200 guestrooms. These will be leisure hotels located in most popular Spanish travel destinations, such as Costa Dorada, Costa del Sol, Costa Brava, the Balearic Islands, and Canary Islands. Starwood is also interested in opening hotels in such popular cities as Barcelona and Madrid. This partnership will surely increase presence of Starwood on the Spanish hotel market. However, this is not the first joint venture of the famous hotelier in Spain as in June 2015 Starwood started strategic partnership with Melia Hotels International. The goal of that joint venture is to acquire beachfront hotels with almost 3000 guestrooms in total.
The joint venture between Starwood and HI Partners was already established and is currently awaiting approval of the European Union Merger Control Office. Commenting the deal, Starwood spokesman mentioned that the company was particularly interested in Spanish market due to recovery of the country’s economy and steady demand from both local and international guests.