ASG books in boutique operator to manage restored Málaga palace – fourth Spanish hotel in €500 million portfolio
- Boutique operator Marugal to manage 118-room luxury hotel in the historic heart of Málaga
- ASG has restored a derelict Andalusian palace and is building an annex on neighboring plots
- Project fills gap in Málaga’s luxury hotel offer and regenerates city center
Jersey, U.K., June 3, 2019 – ASG, which targets special investment opportunities in German and Spanish real estate, has booked in boutique specialist Marugal to operate a luxury hotel created from a restored Andalusian palace in the historic heart of Málaga, one of the leading destinations on Spain’s Costa del Sol.
The new hotel on Calle Granada, called Palacio Solecio, opens later this year and is a few minutes’ walk from the Picasso Museum, the Roman amphitheater and the city’s top tourist attractions.
The 230-year-old building fell into dereliction after the previous owners halted a planned redevelopment of the property in the financial crises of 2008. ASG’s local team led its restoration and saw an opportunity to increase the hotel’s capacity substantially by building an annex on neighboring plots, sourced in two off-market transactions.
Saul Goldstein, ASG’s Founder and Managing Partner, said: “We have turned an eyesore into a hotel that will set the benchmark for luxury in Málaga. Palacio Solecio is a big step forward for efforts to regenerate the city center. Our hotel strategy reflects our creative approach to repurposing buildings and development.”
Palacio Solecio is the fourth investment to date in ASG’s Spanish hotel strategy, which focuses on locations where room numbers are failing to keep up with the boom in tourism and business travel. ASG’s projects will deliver more than 1,000 rooms in total, giving a projected end-value for the portfolio in the region of €500 million.
Almost three million visitors stayed overnight in Málaga last year, local tourist board statistics show. Rising visitor numbers mean Málaga’s center is underserved in terms of luxury hotels as non-European arrivals at the international airport increase and the city develops its outstanding cultural and museum offer.
Marugal is best known in Spain for the six boutique luxury hotels it operates, including the Cap Rocat in Mallorca. Since October ASG has also signed Hard Rock International to operate hotels in Madrid and Barcelona, where it is also constructing a second hotel to operate under the Hampton by Hilton brand.
The restoration works to Palacio Solecio converted it into a 68-key hotel with an interior designed by Antonio Obrador’s studio. The building features the two original internal courtyards, meeting and conference rooms and a gym. ASG and Marugal have signed a partnership with José Carlos García, the chef with a one-star Michelin restaurant at the quayside of Málaga’s port.
ASG is poised to break ground on the annex to the hotel after acquiring two plots facing Palacio Solecio on Calle Tomas de Cozar. This will provide 50 additional rooms, a swimming pool and rooftop bar. Construction work is scheduled for completion by 2021.
Palacio Solecio is an investment by ASG’s Iberia Fund I.