- The Pestana Blue Alvor is a 5 star resort, located in the Algarve, operated by the Pestana Hotel Group and comprising 500 rooms, offering high quality accommodation and facilities.
- Fourth transaction for the Azora European Hotel & Leisure Fund in the Algarve, as the Portuguese leisure market continues to show resilience
- Acquisition means the Fund is now almost 60% deployed, with other goals in sight
Madrid – Azora, the Madrid-based European property investment manager, has completed the acquisition of the Pestana Blue Alvor, a five-star hotel in the Portuguese region of Algarve, on behalf of Azora European Hotel & Lodging, FCR (“Azora EH&L” or the “Fund”), of Pestana Hotel Group, the largest multinational hotel group of Portuguese origin.
Built in 2019 by the Pestana hotel group, the 120,000 m² 5-star resort features almost 500 rooms as well as six restaurants and bars, six indoor and outdoor swimming pools and a modern sports center and spa. The hotel is located in Alvor, on the southern Algarve coast of Portugal, offering excellent access to a number of beaches. The all-inclusive resort, which is almost fully booked for the summer, will continue to be operated by the Pestana hotel group.
This transaction represents Azora’s fourth acquisition in Portugal and follows recent acquisitions of the 384-bed Tivoli Marina Vilamoura resort, the 248-bed Tivoli Carvoeiro resort and the 118-bed Vilalara Thalassa resort, all of which are 5* resorts located in the attractive Algarve region.
Following this acquisition, Azora EH&L has deployed over €1.0 billion and is nearly 60% committed across 8 transactions and 29 assets with nearly 8,000 hotel keys. The Fund was launched in July 2020 with a seed portfolio of 10 resort hotel assets and 4 city hotel assets across Europe and held an oversubscribed final close of €815m in September year, giving the Fund an implied total investment capacity of over €1.8 billion.
Concha Osácar, one of Azora’s founding partners, commented: “We maintain our strong belief in the European hospitality and leisure sector, with significant pent-up demand following long periods of lockdown and restrictions, particularly in the sun and beach markets. This transaction represents a unique opportunity both to acquire an exceptional resort in a very attractive location, and to further develop our presence in the Algarve, a region which is already showing performances close to pre-covid levels thanks to its attractive long-term fundamentals. Having deployed almost 60% of the Fund’s capital so soon after its final closing is a testament to the expertise of our team and access to a unique deal flow across Europe.
José Theotónio, general manager of the Pestana hotel group, commented: “The Pestana Blue Alvor is an essential reference for families and all those looking for a distinctive all-inclusive resort in a region recognized as a seaside destination of choice in the Iberian Peninsula. The Pestana Hotel Group will professionally manage all operations at this unique resort.
About the Pestana Hotel Group
The Pestana Hotel Group is the largest international tourism and leisure group of Portuguese origin. Dedicated to providing its clients with “the time of your life”, the company owns and manages over 100 properties, on 3 continents. Mr. Pestana, the company’s visionary founder, opened the group’s first hotel on the island of Madeira in November 1972. Together with his son, Dionísio Pestana, the brand’s footprint expanded internationally . Under their leadership, the award-winning Pestana brand has become a dedicated guardian of Portuguese culture and heritage, as well as a forward-thinking hotel group that offers the best places in the world. The Pestana Hotel Group comprises four hotel brands: Pestana Hotels and Resorts, Pestana Pousadas de Portugal, Pestana CR7 Lifestyle Hotels and Pestana Collection Hotels. Committed to offering complete and attractive experiences, the Pestana hotel group operates in various sectors of activity: hospitality, tourist real estate, real estate, holiday clubs, golf courses, casinos and industry. It is currently present in 16 countries in Europe, Africa and the Americas. Enter the Pestana universe and learn more about: http://www.pestana.com.
Founded in 2003, Azora Group (“Azora”) is one of Spain’s leading vertically integrated real estate investment and asset management companies, with around €6.2 billion in assets under management in Europe and in the United States. Over the past 19 years, Azora has grown to over 250 professionals with extensive experience across the spectrum of real estate investing, including sourcing, structuring and investing, new developments and repositioning, asset management, rental and sale of individual assets or portfolios.
Azora specializes in different types of assets: residential, hospitality, logistics, offices, senior residences and renewable energies and promotes new lines of investment in leisure, data centers and infrastructure.
Azora pioneered the residential rental segment in Spain, launching its first BTR vehicle in 2003 and currently managing the largest portfolio of purpose-built residential rental assets in Spain, with approximately 15,000 units under management. Azora has also pioneered other social segments of living space, including student accommodation (where it has built the largest portfolio of student accommodation in continental Europe; RESA) and senior living (currently investing in Spain through Adriano Care).
Following its newly created partnership in the US (Azora Exan), Azora is also finalizing the launch of a US multi-family fund, focused on Sunbelt states and with a value-added approach. Through Azora Exan, Azora will continue to expand its presence in the United States (where it has owned hotels for several years) in the residential, hotel, logistics and office segments.