Covivio - Acquisition of the 4-star Iberostar Las Dalias hotel in Tenerife for €81 million

Paris, December 19, 2024

Acquisition of the 4-star Iberostar Las Dalias hotel in Tenerife for €81 million

Covivio, through its 52.5%-owned subsidiary Covivio Hotels, acquired from a controlled affiliate of Starwood Capital a 429-room, 4-star hotel in the Canary Islands. This transaction, signed for €81 million, is fully in line with the Group's strategy of expanding in the hotel sector, particularly in Southern Europe.

Acquisition of a 4-star hotel in the Canary Islands, Spain's top tourist destination

This hotel is located in Tenerife, in the Canary Islands, Spain's leading tourist destination with 69.7 million overnight stays in 2023 (20% of the national total) and the only non-seasonal leisure destination in Europe, thanks to its temperate climate. Ideally located in the heart of the Adeje coast, the island's main tourist hub with almost 11 million overnight stays in 2023, the hotel boasts a privileged location (rated 8.8/10 on Booking.com), just 16 km from Reina Sofia airport. 

The property features 429 rooms, a restaurant, 3 bars, 3 swimming pools, a gym, squash and volleyball courts, as well as 2 meeting rooms for up to 140 people. Built in 1985 and refurbished in 2021, it boasts solid environmental credentials, with a carbon footprint of 18.9kg eqCO₂/m²/year in 2023, in line with CRREM^[1] targets.

Acquired for nearly €81 million including transfer duties, with a stabilized yield of 6.75%, the hotel is let to Iberostar on a firm triple-net lease until 2041. 5^th hotel operator in Spain and owned by the Spanish Fluxa family for 60 years, Iberostar operates 110 hotels in over 35 countries. 

2024, a turning point for Covivio in the hotel business

The year 2024 marks a turning point for Covivio in the hotel sector, after increasing its stake in its subsidiary Covivio Hotels by 8.7% in the first half of the year (to 52.5%) and finalizing in early December the consolidation of operating and property companies held jointly with AccorInvest.

This is Covivio’s first acquisition of hotel properties since 2020. In line with its ambitions announced at its Capital Markets Day 2024 in Paris at the end of November, Covivio is thus continuing to strengthen its exposure to the hotel sector, particularly in the leisure segment in Southern Europe.  

COVIVIO 

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Selected pictures of 4-star hotel Iberostar Las Dalias 

COVIVIO 

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CONTACTS  

                                  Press Relations                                                 Investor Relations

                                Géraldine Lemoine                                                   Vladimir Minot

Tel: + 33 (0)1 58 97 51 00 Tel: + 33 (0)1 58 97 51 94 geraldine.lemoine@covivio.fr vladimir.minot@covivio.fr

Louise-Marie Guinet

Tel: + 33 (0)1 43 26 73 56 covivio@wellcom.fr

ABOUT COVIVIO

Thanks to its partnering history, its real estate expertise and its European culture, Covivio is inventing today’s user experience and designing tomorrow’s city.

A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces.

A benchmark in the European real estate market with €23 bn in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance.

Build sustainable relationships and well-being, is the Covivio’s Purpose who expresses its role as a responsible real estate operator to all its stakeholders: customers, shareholders and financial partners, internal teams, local authorities but also to future generations and the planet. Furthermore, its living, dynamic approach opens up exciting project and career prospects for its teams.

Covivio’s shares are listed in the Euronext Paris A compartment (FR0000064578 - COV), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF “SIIC France” and CAC Mid100 indices, in the “EPRA” and “GPR 250” benchmark European real estate indices, and in the ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World & Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext® CDP Environment France EW, ISS ESG, Ethibel and Gaïa ethical indices and also holds the following awards and ratings: CDP (A), GRESB (88/100, 5-Star, 100% public disclosure), ISS-ESG (B-) and MSCI (AAA).

Solicited ratings :

Financials:                    BBB+ / Stable outlook from S&P