FREO hotels platform aims €400m at Spanish hospitality

FREO Group has launched a new platform aiming to invest €400 million within three years in hotels in Spain on behalf of institutional capital and is currently in exclusivity on a number of deals.

The company has a significant investment programme planned to reposition the hotels.

FREO said it is considering urban hotels in Barcelona and Madrid, as well as leisure hotels in popular tourist regions such as the Balearic Islands, the Canary Islands and the Costa del Sol. It says assets should be well-located with potential to increase value through active asset management.

FREO became active in Spain in 2015 and has closed approximately €750 million of transactions there either as a co-investor or on behalf of institutional investors.

The company has a pan-European hotels operation and in 2019 acquired a stake in, and agreed a strategic partnership with, hotel management and advisory company Michels & Taylor. FREO is also seeking opportunities in other countries in EEA, including the UK, France and Italy.

“Covid has provided a significant temporary disruption to hospitality but we are long-term believers in the sector,” said FREO managing director and head of hotels Andrew Hunter. “The current surplus of investment capital and support packages for hotels means that we must do more than ride the cycle and our strategy is very targeted, looking only at quality locations with strong upgrade potential to provide a sound investment basis.”