Target Information

The Wyndham Grand Cristal Cliffs is a premier hotel located in Carvoeiro, a charming resort town renowned for its breathtaking cliffs and scenic coastline along the Algarve region of Portugal. This hotel offers guests stunning views of the ocean and a unique, unforgettable hospitality experience, making it an appealing destination for tourists and travelers alike.

Featuring a total of 134 apartments, the property includes several amenities such as restaurants, a bar, outdoor swimming pools, a gym, and a spa. The hotel's construction covers an area of 8,460 square meters, positioning it as a substantial investment in the hospitality sector.

Industry Overview

The hospitality and tourism industry in Portugal has witnessed significant growth over the past few years, supported by a robust influx of international visitors drawn to its rich culture, mild climate, and stunning landscapes. The Algarve region, in particular, has become a prime location for holidaymakers seeking sun-soaked beaches and diverse activities.

Despite the challenges posed by the COVID-19 pandemic, the recovery trend in this sector has been promising, with rising occupancy rates and increased traveler confidence. The Portuguese government has also been proactive in promoting tourism through various initiatives, encouraging investors to consider opportunities within the market.

Carvoeiro has established itself not only as a picturesque resort but also as a desirable location for luxury hotel investments. With the rising demand for high-quality accommodations and services, hotels like Wyndham Grand Cristal Cliffs are well-positioned to capitalize on these trends. The focus on sustainable practices and high-value experiences will further enhance the attractiveness of the region's hospitality sector.

Rationale Behind the Deal

Monarque Funds invested €12.7 million into the Wyndham Grand Cristal Cliffs in 2022, recognizing the potential for substantial returns within the thriving hospitality landscape of Algarve. By successfully exiting the investment in late 2023 with an impressive Internal Rate of Return (IRR) of 8.1%, the deal highlights the fund's effective strategy in identifying and leveraging high-value opportunities in a competitive market.

The swift exit, within just one year of investment, not only showcases the asset's strong performance but also underscores the effective management and operational capabilities of Monarque Funds in maximizing returns for their investors.

Investor Information

Monarque Funds is a recognized investment management firm specializing in hospitality and tourism sector investments. Known for their strategic approach to asset selection, they have consistently sought properties with strong value propositions and growth potential. Their expertise in aligning investment decisions with market trends has positioned them as a reliable partner for investors in the hospitality industry.

The firm currently manages the MPHT – Monarque Portugal Hospitality and Tourism Fund, which is open for subscriptions, allowing investors the opportunity to engage in further promising hospitality projects across Portugal. Their commitment to delivering exceptional results has reinforced their reputation as a trustworthy investment choice in the sector.

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The recent exit from the Wyndham Grand Cristal Cliffs investment appears to be a sound decision for Monarque Funds. An IRR of 8.1% in just one year illustrates not only the hotel's intrinsic value but also Monarque's capacity to operate effectively within a vibrant hospitality market. Such robust returns are indicative of thorough analysis and timely decision-making.

Additionally, the strategic positioning of Carvoeiro within the Algarve adds to the long-term viability of the investment. The area's popularity among tourists is likely to continue driving demand for high-quality hotel accommodations, suggesting that sustained performance can be expected from similar properties.

With the hospitality industry experiencing a resurgence post-pandemic, Monarque Funds remains well-positioned to capitalize on new investment opportunities. Their proactive approach to asset management and market engagement makes them an advantageous partner for those looking to invest in the sector.

Overall, this deal stands as a testament to the value creation potential within the hospitality industry in Portugal, affirming that strategic investments can yield favorable outcomes when aligning with market dynamics.

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