Hampton by Hilton Barcelona Fira Gran Vía will operate under a franchise agreement with Borealis Hotel Group, which has signed a long-term lease agreement to operate the new hotel. ASG will build the establishment in front of the Fira de Barcelona, in the business district of Plaza Europa. Construction work on the hotel has already begun and is expected to be completed in the first quarter of 2021. The project envisages a total planned investment of around 40 million euros.
"One of the cornerstones of our hotel strategy is to help brands with a solid operating track record to consolidate their presence in the very attractive Spanish market. ASG's hotel strategy also benefits from our local team's ability to identify opportunities with potential in relevant locations with supply shortages. We have a strong project portfolio and expect to make further announcements in the coming months as our strategy in this segment gains momentum," said Saul Goldstein, ASG founder and managing partner.
Hard Rock International teamed up with ASG in October for the opening of a hotel the latter is building in a former office building in Madrid's museum area. Also, ASG is carrying out a deep rehabilitation of a hotel in the historic center of Malaga to position it in the luxury segment. The Hampton by Hilton Barcelona hotel is an investment made by ASG's Iberia Fund I.
"The signature of Borealis under the brand Hampton by Hilton is an important milestone for this project. We identified the potential that this property could host for the international conference and exhibition market thanks to its location, in front of Barcelona's main conference centre and with important companies in the vicinity, as well as excellent transport connections, both to the airport and to the rest of the city," said Brian Betel, managing partner of ASG Iberia.
Juan Alonso Bartolomé, director of asset management of ASG Iberia, commented: "The hotel segment, in which we announced today our third project, is of special relevance for ASG in Spain in a market that, being one of the most relevant for tourism and business travelers from around the world, still presents opportunities aligned with our strategy of value creation.
Hampton by Hilton seeks value in the quality segment of the business travel market, with more than 3,000 hotels in operation or under construction, including Hampton by Hilton Alcobendas Madrid, which is currently under construction. Borealis, headquartered in Amsterdam, specialises in the investment, promotion and management of hotels and has completed operations worth more than €3 billion since 1997. In addition, it collaborates with several international brands in the hotel sector.
ASG is the trade name of ActivumSG Capital Management Ltd., a Jersey-based venture capital investment manager specialising in special situations in European real estate markets, especially in Germany and Spain. The firm has raised €1.5 billion in initial capital commitments for the five fixed capital funds it has established to date.