The Pestana Group, which already managed the hotel and golf courses, purchased the Vila Sol development, located near Vilamoura, for around 43 million euros.
This development includes a 5-star hotel, two 18- and 9-hole golf courses and land for development with a gross construction area of 7.770 square meters.
The Pestana Vila Sol is a reference in the hotel industry and golf tourism in Portugal, standing out for its privileged location in Vilamoura, one of the most premium areas in the Algarve. With 189 rooms, a wide range of first-class amenities and two internationally renowned golf courses, with a total of 27 holes, the complex attracts both tourists and golfers from all over the world.
Furthermore, the land for development also adds value to this business, offering opportunities for future expansion projects or real estate developments.
«This successful sale highlights the resilience of the real estate market in Portugal and the growing interest of national and international investors in the Algarve region», highlights a statement from consultants JLL, CBRE and Worx, who advised Santander Asset Management on the sale of this tourist complex out of 5 stars.
“The acquisition of the Pestana Vila Sol development is the culmination of a process that began a dozen years ago, when the Pestana Group took over the management of this hotel unit and the adjacent golf course. In a first phase, we managed to recover the profitability of these units, having subsequently reinforced our bet, assuming the risk as tenants with a fixed market rent”, said Pedro Lopes, administrator of the Algarve Region of Grupo Pestana.
“With the purchase of this project, we demonstrate and highlight what has been, from the beginning, our commitment to this project and to investing in tourism in the Algarve”, concluded Pedro Lopes.
“This sale represents a significant milestone in the Vilamoura property market, highlighting the potential for continued investment in the region. The Pestana Vila Sol is a reference in tourism and golf in the Algarve, and we are pleased and proud to have participated in this transaction.” comments Karina Simões, Head of Hotel Advisory from JLL.
Duarte Morais Santos, Head of Hotel from CBRE Portugal adds that “this is another deal that confirms the growing dynamism of the hotel market in the south of the country, attractive to both international and national investors. The Pestana Vila Sol is a unique and reference asset in the Algarve and we were proud to be involved in this transaction. We strongly believe in the growing potential of the Algarve region, which with a quality product will have what is needed to grow and attract new investors in the future”.
Francisco Caldeira, from Worx Real Estate Consultants, comments, for his part, that “the hotel sector has gained increasing prominence in 2023, representing 40% of the total investment volume in the first half of the year. In this way, the continued importance of Portugal on the international investment map, as well as the weight of tourism in the country, is clear. The Algarve, with emphasis on Vilamoura, has demonstrated its constant evolution and development, becoming attractive in the context of global tourism. This operation emphasizes the strategic importance of the region, both for national and international operators and investors. Finally, it is important to highlight the work carried out by the three consultants, who, in close collaboration with Santander, as a client, completed a successful and benchmark transaction in 2023, of which everyone can be proud”.
Luís Figueiredo, administrator of Santander Asset Management, said that “the Hotel sector proved to be very resilient in the post-pandemic period, with Portugal continuing to be one of the privileged tourist destinations, particularly the Algarve region. We have always believed in the value of the Vila Sol “complex”, due to its potential, location, complementarity with golf courses, thus removing seasonality from the hotel's operation and also because it is operated by the prestigious Pestana Group, making it an attractive asset with strong interest from investors”.
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