The Hotel Investment Partners (HIP) fund, Blackstone's hotel investment tool in southern Europe and hotel leader in bed ownership in the south of Gran Canaria, has closed an agreement with a syndicate of financial entities including Morgan Stanley, BNP Paribas, Santander, Crédit Agricole, Corporate Investment Banking (CIB) and Citi to strengthen the business in territories such as the south of Gran Canaria. The funds are key to the development of tourism in the Canary Islands since they have allowed the control of family tourism entities to be removed from inefficient and highly leveraged companies.
In this way Blackstone achieves that the refinancing for its hotel business has been accepted with a credit of 1.600 million euros, according to Cinco Días. The loan has a cost of around 3,5% and has 43 hotels with 13.000 keys as mortgage collateral. The operation exceeds that achieved by Blackstone for its Testa residential business in 2023, which reached 1.500 million euros.
The loan, according to Cinco Días, corresponds to the fund's portfolio from Hispania, which has 43 hotels. The previous loan, with an equivalent volume, was valid until August 2024. With the new loan, the validity is extended ten more years. The loan has a cost of around 3,5% and has 43 hotels with 13.000 keys as mortgage collateral.
In 2023, the company refinanced another part of the HIP portfolio, the assets from Sabadell, with 680 million euros. The loan was led by financial entities such as Morgan Stanley and Crédit Agricole. Hotel investment reached 1.500 billion euros in the first quarter. Savills data indicates an increase of 30% compared to the previous year. With this, it is expected that the year will close with an average of the last years, around 3.000 million euros.
