Singapore's sovereign wealth fund (GIC), one of the world's largest institutional investors and belonging to a country that hasn't held democratic elections since the mid-50s, is considering taking a strategic step into the Spanish tourism sector. The entity is considering increasing its stake in Hotel Investment Partners (HIP), the largest owner of hotel beds in the south of Gran Canaria, where it already controls 35% of the capital.
The move comes amid a strategic review by Blackstone, which owns 65% of HIP and has put forward various options for divesting from the company: from an IPO to an outright sale to the highest bidder. To this end, the US giant hired Morgan Stanley and Citi as financial advisors earlier this year.
Audit in progress, no guarantees of agreement
GIC has initiated the due diligence process on the hotel platform, although the Asian fund itself acknowledges that there are no guarantees that the audit will lead to a transaction. The potential transaction would occur at a time of great dynamism in the hotel sector, which has established itself as the most active within the Spanish real estate market. In southern Gran Canaria, HIP manages iconic assets such as the Barceló Margaritas and former establishments of the IFA Hotels chain, now repositioned under top-tier international brands, which it manages for Blackstone Lopesan.
From Sabadell to Blackstone: the story of HIP
Founded in 2015 by Alejandro Hernández-Puértolas and Banco Sabadell, HIP was acquired in 2017 by funds managed by Blackstone, which has since launched an ambitious repositioning strategy. During this time, the company has invested more than €600 million in capital, consolidating its position as the largest owner of resort hotels in Southern Europe.
HIP currently has 69 hotels and 22.000 rooms across major tourist destinations in Spain, Italy, Greece, and Portugal. The majority of its properties are located in the Canary Islands (23) and the Balearic Islands (26), while the remainder are spread across the Iberian Peninsula (15), Greece (10), and Italy (5). Eighty-nine percent of its rooms are located on the seafront, and 89% are resort properties managed by international brands such as Marriott, Hyatt, Barceló, Melià, and Lopesan.
Canary Islands, epicenter of the operation
A potential increase in stake by the Singaporean sovereign wealth fund would make the Canary Islands, and particularly the southern part of Gran Canaria, the center of one of the largest corporate transactions in the European hotel sector. The region, which holds strategic weight within HIP's portfolio, would be the most impacted by a change in the company's shareholding balance.
