Spanish hotel group Meli Hotels International has agreed a joint venture deal to sell a majority stake in seven of its major resort hotels in Spain to US fund management firm Starwood Capital for $198 million.
Melia will continue to manage the properties under its Sol Hotels brand.
The seven hotels comprise a combined 2,933 rooms and include the Sol Príncipe in Malaga, the Sol Lanzarote and Meli Gorriones in Fuerteventura, the Sol Ibiza and Sol Pinet Playa in Ibiza, and the Sol Mirlos and Sol Tordos in Mallorca.
"We are delighted to be partnering with Melia on this transaction, and to build on the strong relationship we have already established with the company’s executive team," said Keith Evans, vice president, European hotels at Starwood Capital Group.
The terms of the partnership sees Starwood take an 80% stake in the hotels, as Meli continues an asset light strategy designed to improve the bottom line.
"Meli’s strategy is succeeding in enhancing our leadership in hotel management, while also favoring the strategic growth we plan for our brands worldwide," said vice chairman and CEO Gabriel Escarrer.
Melia owns or manages 370 hotels in 40 countries.
