Investment Rationale
This multi-asset deal is based in S’Algar, in the south-east part of Menorca, and counts 465 hotel rooms and apartments separated in four sea-facing hotels.
Jointly with the hotel assets, the deal comprises of a beachclub, three restaurants, one bar, a sports center, a supermarket, a Spa and two apartments.
Stoneweg intends to build a further 27 rooms, reaching 492. It will consist of a share deal, with a new SPV by Stoneweg acquiring two holdcos. The compound will be operated by Alua (ALG), a +$5bn revenue company already managing KKR and Blackstone hotels, through a fix and variable rent schedule.
Key Data
| Acquisition price | € 30.5 million | |
| Total Investment | € 43 million | |
| Target IRR | > 20% | |
| Target Multiple | 1,8-2x |