Information on the Target

The Boho Club Marbella is a luxurious boutique hotel located in Marbella's prestigious Golden Mile, Málaga, Spain. This 21,000 square meter complex has been recognized for its high standards, featuring a restaurant that received a recommendation from the Michelin Guide, and was awarded the title of Best Luxury Boutique Hotel in Spain at the 2021 Spain Luxury Hotel Awards.

The hotel is fully owned by Quartiers Properties AB (publ), a Swedish publicly listed company trading on the Nasdaq First North Growth Market since 2017. Quartiers Properties holds ownership of the property, its brand, and the management company responsible for running Boho Club, enabling a comprehensive control over its operations.

Industry Overview in Spain

Spain's luxury hospitality sector has exhibited significant resilience and growth, becoming one of the leading tourist destinations in Europe. The country is renowned for its diverse landscapes, rich cultural heritage, and vibrant culinary experiences, factors that collectively attract millions of international visitors each year. Regions like Costa del Sol have become synonymous with luxury accommodation and experiences, driving competition and innovation among hospitality providers.

In recent years, despite challenges such as the COVID-19 pandemic, the hotel industry in Spain has adapted by focusing on quality service, enhanced safety protocols, and leveraging digital technology to improve guest experiences. The recovery trajectory for the industry appears strong, with increased investment flowing into luxury properties as consumer demand for premium experiences rises.

The Costa del Sol region, in particular, continues to draw significant interest from both domestic and international investors, thanks to its favorable climate, proximity to major European markets, and established tourism infrastructure. Luxury hotels and boutique accommodations are benefiting from both leisure and business travel, creating a robust market environment conducive to further development and investment opportunities.

The Rationale Behind the Deal

The refinancing of Boho Club Marbella by Alantra through its Alteralia Real Estate Debt Fund allows Quartiers Properties AB (publ) to optimize its cost of financing while ensuring financial flexibility for future investments and developments in the Costa del Sol. This strategic move signifies a commitment to bolstering growth in the hotel sector, marking a shift towards recovery post-pandemic.

Additionally, the financing structure, which includes long-term and bullet financing, enables the hotel owner to allocate resources towards further enhancing the property and potentially expanding their portfolio in the thriving Spanish real estate market.

Information about the Investor

Alantra is a global independent investment banking and asset management firm focused on mid-market transactions. With a strong presence in Europe, Alantra manages more than €1.2 billion in assets, showcasing its expertise across various sectors, including real estate, through its private debt strategies.

Alteralia Real Estate Debt FIL, the investment vehicle through which this deal is executed, specializes in providing financial solutions for commercial real estate assets primarily in Spain. Leveraging its extensive experience in the market, Alteralia RED seeks to build lasting partnerships with real estate entities, fostering growth and innovation in the sector.

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From an investment perspective, the refinancing of Boho Club Marbella appears to be a sound decision given current market dynamics. The choice of a boutique hotel in a premium location like Marbella, known for its luxury tourism appeal, makes it a compelling opportunity for investors. The endorsement by Michelin further elevates the property’s profile, suggesting strong performance potential in the hospitality sector.

Moreover, the backing of the EGF Guarantee Instrument enhances the investment's security, demonstrating the confidence from European financial institutions in the hotel sector's recovery. This indicates a low-risk investment relative to the expected returns, given the location and quality of the hotel.

On the other hand, the strategic approach adopted by Quartiers Properties and Alantra in this deal highlights the potential for future growth and expansion in a recovering sector. The emphasis on maintaining flexibility in financing to adapt to changing market demands positions them favorably for the long term.

Lastly, Alantra's experience and market positioning enhance the credibility of this acquisition, suggesting that both parties are equipped to navigate the evolving landscape of the hospitality market effectively. Overall, this transaction is poised to yield beneficial outcomes for both the investor and the hotel, making it a commendable investment venture.

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