Hotel Investment Partners (HIP), owner of businesses such as the former IFA chain of hotels and the Barceló Margaritas in Playa del Inglés, majority-owned by Blackstone, is adjusting its corporate structure in a clear sign of its imminent listing on the capital market. The transformation of its parent company from a Limited Company (SL) to a Public Limited Company (SA), a prerequisite for listing, places the company in the final stretch of a possible Initial Public Offering (IPO) which, according to financial sources consulted by Maspalomas24H, could allow, for the first time in history, individual savers in southern Gran Canaria to purchase shares that directly impact the tourism market.
This conversion, recently approved by the board of directors of Halley Bidco, the Spanish parent company, and replicated in several of its operations such as HIP Hotels I and II, is a technical but fundamental step. "It allows the company to have greater flexibility, while optimizing the corporate structure," said industry sources in southern Gran Canaria. The move follows in the footsteps of other firms that have explored the stock market route, both those that were listed (such as Puig and NZI) and those that ultimately opted for other strategies (Astara, Capital Energy).
The transaction, which is expected to begin in early 2025, is projected to be a "dual track," meaning that Blackstone is not only preparing the IPO but is also simultaneously analyzing a direct sale to the highest bidder. This strategy allows the fund to maximize the exit value, keeping both options open until the last minute.
Citi and Morgan Stanley have been appointed as financial coordinators, while the Uría Menéndez firm is handling the legal aspects. The decision between a public offering or a subscription offering for new shares, or a combination of both, remains to be determined, depending on market conditions.
Positioning in Southern Europe and Singapore's Interest
With 73 properties and 22.000 rooms strategically distributed throughout Spain, and an excellent presence in the Canary Islands, Greece, Italy, and Portugal, HIP has established itself as the largest hotel operator in the south of Gran Canaria and a key player in the transformation of the European tourism sector. Its presence on the island, with a significant portfolio, underscores the region's importance in its business strategy and its value to potential investors.
Interest in HIP is not new. At the end of 2023, Singapore's sovereign wealth fund, GIC (Government of Singapore Investment Corporation), already acquired a minority stake of 35%. This partnership was described by Alejandro Hernández-Puértolas, CEO of HIP, as "an additional vote of confidence in HIP's business and the European resort hotel sector." With the potential IPO, GIC positions itself as a natural candidate to increase its stake, given its prior investment and knowledge of the asset. If HIP ultimately goes public, it would be the second IPO of a Spanish Blackstone holding company in a single year, following the progress made with the IPO of gaming giant Cirsa, owners of the Holiday World amusement park in Maspalomas. The transaction would consolidate Blackstone's divestment strategy and mark a milestone in the European hotel market.
