Azora announced that it had acquired its third hotel complex in the Algarve. Luxury Vilalara is a luxurious five-star hotel on Seagull Beach in Porches. According to the company, the asset has 118 rooms and suites and “is considered one of the best resorts in Portugal for its privileged location and quality of service.” It is currently managed by Blue & Green. The value of the investment was not disclosed.
Concha Osácar, a partner at Azora, explains, “the hotel Vilalara reinforces our conviction about tourism’s recovery in Europe and the Algarve’s unique positioning as the protagonist of this recovery. At Azora, we remain convinced of this region’s attractiveness and that of Portugal, and we want to continue to work very actively with hotel groups.”
Azora has set up a €680-million fund, with an investment capacity of €1.5 billion. The fund is intended exclusively for acquiring and operating hotel assets. It expects to invest approximately €400 million this year.
Its last acquisition consisted of two other five-star hotels in the Algarve. The first with 383 rooms and the second with 248, with a total investment of 148 million euros. Previously, it had bought a portfolio comprising ten resort hotels and four city hotels in Europe), the Giverola Resort and a hotel on the Costa Brava.
Azora’s investment in these assets exceeded €1.094 billion in the first six months of 2021, up 14.5% more than last year. The 52 operations are split into 60% in sun and beach destinations and 40% in urban assets. Several funds increased their activity as the pandemic began to slowly wind down, taking advantage of hotel groups’ liquidity needs and limited funding availability.
Translation: Richard D K Turner