Millenium Hospitality Real Estate Company | SOCIMI SA (approx. then simply Millenium or MHRE) acquired the hotel «Iberostar Las Letras Gran Vía» in Madrid, located on Calle Gran Vía, 11, for an amount of almost 70 million euros. The amount does not take into account the additional costs of concluding the transaction, but everything was paid at the expense of the company's own funds.
The hotel has 109 rooms, located in a fairly elite area at the intersection of Calle Gran Vía and Calle de Alcalá — the cultural and commercial center of the Spanish capital. There are several signature luxury hotels located here, which will soon be joined by the hotels «JW Marriot», «Zorrilla 19» and «Nobu Madrid», owned by MHRE.
Thus, the company will have four hotels at once on one of the key and most prestigious streets of Madrid. This significantly strengthened Millenium's position as the largest owner of luxury hotels in the new «golden mile» of the Spanish capital. In total, MHRE has 12 assets in the hotel segment with a total value of about 550 million euros.
But Millenium is not going to stop and plans to increase the number of its own hotel hotels in Madrid in the coming months. The company is going to invest in high-quality and expensive facilities with great potential to attract a wealthy tourist. The company has been hatching these plans since May 2021, when it first increased the volume of investments in the local hotel market.
By the end of 2022, MHRE is going to open the above-mentioned hotel «JW Marriot», located on the Plaza de Canalejas square. The opening of «Nobu San», also mentioned earlier, will follow in 2023. It is located on Calle Zorrilla, 19. The next Millenium project, however, will be the Plaza San Francisco Hotel, which will open its doors in Seville also in 2023.
The company intends to complete the investment processes that began in May-July 2021 in the coming year. As a result, in the medium term, it is expected to reach a gross value added of up to $1 billion. At the moment, the company has a portfolio of assets worth about 500 million euros. The company's short-term plans include regular listing of assets on the market in order to increase the volume of liquidity and the value of shares on the stock exchange.