l{"id":1291969,"date":"2023-10-31T11:55:49","date_gmt":"2023-10-31T11:55:49","guid":{"rendered":"https:\/\/www.businesstelegraph.co.uk\/blackstone-sells-stake-in-e4bn-spanish-hotel-chain-to-gic\/"},"modified":"2023-10-31T11:55:49","modified_gmt":"2023-10-31T11:55:49","slug":"blackstone-sells-stake-in-e4bn-spanish-hotel-chain-to-gic","status":"publish","type":"post","link":"https:\/\/www.businesstelegraph.co.uk\/blackstone-sells-stake-in-e4bn-spanish-hotel-chain-to-gic\/","title":{"rendered":"Blackstone sells stake in \u20ac4bn Spanish hotel chain to GIC"},"content":{"rendered":"<p> <script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- newscabal uk text -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"3688094655\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=e85d4f49-0ce5-4d37-902d-eaa49c58791c\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Blackstone Group is selling a stake in Spanish hotel group Hotel Investment Partners to Singaporean sovereign wealth fund GIC, in a move that will provide capital for the business to expand at a time when borrowing costs are soaring. <\/p>\n<p><a href=\"https:\/\/www.ft.com\/stream\/836a11bc-0740-4549-ac19-f6837b411cf6\" data-trackable=\"link\">GIC<\/a> will acquire a 35 per cent stake in the company in a deal that values HIP at more than \u20ac4bn, according to a person familiar with the terms.\u00a0<\/p>\n<p>The decision to raise more equity comes as borrowing costs have risen for real estate investors in a higher interest rate environment. Last week, Canary Wharf raised \u00a3300mn in new money to help fund its expansion. <\/p>\n<p>\u201cWe aren\u2019t exiting, we are bringing in a capital partner to help support the growth of the business,\u201d James Seppala, Blackstone\u2019s head of European real estate, told the Financial Times. <\/p>\n<p>He added that the uncertain economic outlook meant that it was \u201cprudent\u201d to cut leverage levels at businesses that <a href=\"https:\/\/www.ft.com\/stream\/2519f1ee-e8b7-4f4b-976a-d2f4cf7b7dac\" data-trackable=\"link\">Blackstone<\/a> owns. <\/p>\n<p>\u201cWe are bringing in more equity because in this environment, we feel it\u2019s better,\u201d Seppala said. <\/p>\n<p>The impact of higher interest rates on the cost of financing takeovers coupled with economic uncertainty has weighed on dealmaking this year and prompted some regulators to warn of the potential impact <a href=\"https:\/\/www.ft.com\/content\/deca217f-2c7c-4517-931f-1bc84c090445\" data-trackable=\"link\">on sectors such as real estate<\/a>.<\/p>\n<p>The acquisition of the stake marks the latest bet by GIC on the European hotel sector, as investors wager that high-end holiday destinations will defy fears of an inflation-driven slump in consumer spending.\u00a0<\/p>\n<p>Blackstone bought HIP in 2017 from Banco Sabadell two years after it was founded, and has overseen a rapid expansion.\u00a0The business, which buys hotels across southern Europe and refurbishes them before leasing them out to hotel operators including the Ritz-Carlton, Hilton and Marriott, has since increased its portfolio more than fivefold. <\/p>\n<p>It now has 73 hotels across the Canary Islands, the Balearic Islands, Italy, Greece and Portugal. Recent new openings include an all-inclusive resort in Mallorca.\u00a0<\/p>\n<p>Alejandro Hern\u00e1ndez-Pu\u00e9rtolas, chief executive of HIP, said the deal was a \u201cfurther vote of confidence in\u2009.\u2009.\u2009.\u2009the resort hospitality sector in Europe\u201d, with revenue booked for the rest of the year up more than 20 per cent compared with a year ago.<\/p>\n<p>GIC has ramped up its investment in the real estate sector.\u00a0Real estate assets made up about 13 per cent of its total assets as of March this year, up from 10 per cent a year earlier.\u00a0<\/p>\n<p>Earlier this year, GIC announced it was teaming up with BlackRock and the British Airways pension scheme to invest in a large mixed-use real estate project in London\u2019s King\u2019s Cross district.\u00a0\u00a0<\/p>\n<p>The year before, the sovereign wealth fund bought a majority stake in Mediterranean luxury resort operator Sani\/Ikos Group <a href=\"https:\/\/www.ft.com\/content\/4445690b-a215-4fcd-a69e-c5ae05884db6\" data-trackable=\"link\">in a \u20ac2.3bn deal<\/a>, one of the largest for a European hotel group since the Covid-19 pandemic. <\/p>\n<p>In addition, it bought stakes in the Paddington office estate in London and in two university accommodation providers.\u00a0GIC was also among the parties interested in buying UK holiday business Center Parcs from Brookfield earlier this year.<\/p>\n<p>Blackstone has been actively investing in European real estate in 2023. <\/p>\n<p>\u201cOver half of our investment activity in real estate this year has been in Europe given greater dislocation and pressure on sellers in the region,\u201d Blackstone president Jon Gray said in a recent earnings call. <\/p>\n<\/div>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"7859258044\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.ft.com\/content\/e85d4f49-0ce5-4d37-902d-eaa49c58791c\">READ SOURCE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Blackstone Group is selling a stake in Spanish hotel group Hotel Investment Partners to Singaporean sovereign wealth fund GIC, in a move that will provide capital for the business to expand at a time when [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_oct_exclude_from_cache":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-1291969","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Blackstone sells stake in \u20ac4bn Spanish hotel chain to GIC - Business Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ft.com\/content\/e85d4f49-0ce5-4d37-902d-eaa49c58791c\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blackstone sells stake in \u20ac4bn Spanish hotel chain to GIC - Business Telegraph\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. 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