CMS and Uría Menéndez on hotel portfolio deal
CMS Albiñana & Suárez de Lezo has advised Extendam and the funds it manages on the acquisition of a portfolio of three hotels located in central Madrid and Barcelona, operated under different IHG Hotels & Resorts brands. Extendam acquired the companies owning the hotels and holding the operating hotel business through two parallel share deals, and refinanced the existing debt.
Uría Menéndez also advised on the transaction, acting for Eurazeo and its institutional investment partner on the sale of their stake in FST Hotels, the Spanish hotel platform comprising the Crowne Plaza Madrid Centre Retiro, voco Madrid Retiro and Hotel Indigo Barcelona Plaza España, to Extendam. The deal value was not disclosed.
The portfolio comprises three four-star assets totalling 543 rooms in central locations across two of Europe’s hotel markets. In Madrid, the deal covers the Crowne Plaza Madrid Centre Retiro (157 rooms) and the voco Madrid Retiro (197 rooms). In Barcelona, it includes the recently refurbished Hotel Indigo Barcelona Plaza España (189 rooms), located in the Montjuïc district.
With this transaction, Extendam closed what it described as the largest and most complex M&A deal in its history in Spain, expanding its presence on the Iberian Peninsula, where the manager now holds 35 hotels and more than 4,400 rooms.
The teams
CMS coordinated teams across the firm to handle the corporate, real estate, urban planning, financial, tax, employment and regulatory aspects of the transaction. The firm advised on the acquisition of the operating and property-owning companies, conducted legal and tax due diligence, structured the refinancing of the existing debt, and designed an investment structure supporting the assets’ repositioning plan while allowing for the future entry of co-investors through a holding company. The team also renegotiated the hotel management agreements (HMA) with the operator.
The operation was led by Javier Colino, Partner, and Jorge Durán, Senior Associate, both from the Real Estate department. The team also included Beatriz Madrigal, Rodrigo García-Escorial de León and Luna Mora (Real Estate); Ricardo Héctor, Diego de Miguel, Marta Burgos and Baldomero Fernández-Reyes Falcón (Tax); Cristina Ridruejo, Giuseppe Esposito and Juan Egea (Employment); and Carlos Vérgez and Aida Oviedo (Competition).
The Uría Menéndez team was led by Christian Hoedl (Partner, Corporate and M&A) and included Clara Muñoz (Managing Associate, Corporate and M&A), Pedro Sáenz (Senior Associate, Corporate and M&A), Guillermo Canalejo (Partner, Tax) and Isabel Desviat (Associate, Tax).
In the picture above: Javier Colino, Jorge Durán
In the picture below: Christian Hoedl, Guillermo Canalejo and Clara Muñoz
