RIC Private Equity is leveraging collective investment opportunities to drive the rehabilitation of hotel properties in the Canary Islands, aiming to enhance the region's tourism sector recovery post-COVID-19.

Target Information

The collective investment aimed at hotel rehabilitation is gaining traction alongside the robust recovery of the tourism sector post-COVID-19. This initiative, facilitated through the Canarias Investment Reserve (RIC), allows investors to pool resources for hotel renovation projects without direct ownership of the establishments. Instead, they earn future returns derived from the utilization of RIC funds, which have been a significant tax incentive in the Canary Islands since the 1994 legislation. Enrique Guerra, the General Director of RIC Private Equity, noted that his firm, established in October 2019, faced immediate challenges following the onset of the pandemic, leading to a halt in tourism and administrative operations. As a result, only one of five planned projects was completed so far.

Industry Overview

The tourism industry in the Canary Islands has displayed signs of recovery, driven by the desire to enhance service quality in the aftermath of the pandemic. This landscape presents an opportune moment for collective investments, particularly in the rehabilitation of hotels, which have attracted interest from various stakeholders aiming to improve their offerings. Companies within this sector, like Servatur, are actively seeking funding through RIC to reposition their hotels and meet the demand for higher quality accommodations.

For instance, Servatur is currently involved in the rehabilitation of Puerto Azul, located in Puerto Rico (Mogán, Gran Canaria), with a projected investment of 34 million euros. This project exemplifies how RIC funds can facilitate