Ibervalles, the socimi specialising in value-added assets, has announced the conversion of the office building located at Avenida General Perón, 27 in Madrid, acquired from Allianz in October 2023. The property will be demolished to build a luxury hotel opposite the Santiago Bernabeu Stadium. The company is finalising the selection of an internationally renowned architect to design the hotel with an avant-garde and sustainable approach.
In collaboration with CBRE, Ibervalles will launch a tender to select the operator to manage the hotel. Javier Isidro Mosquera, CEO of Ibervalles, commented on the strategy: "In line with our objective to maximise returns for our investors, we have decided to transform the office property into a luxury hotel".
The project benefits from a favourable environment for the hotel sector in Madrid. According to data provided by the Community of Madrid, the region's tourism profitability was consolidated in 2023, reaching a total expenditure of €16,675 million, an increase of 24.2% compared to the year before the pandemic. The 5% increase in visitors and the extension of the average stay to 5.8 days contribute to the city's tourist attractiveness.
In the hotel sector, the socimi estimates an investment of 240 million euros by 2025, with the transformation of the building into a five-star hotel as part of this plan.
Mosquera added that "Madrid is experiencing an unprecedented hotel boom, driven by the city's urban and tourist renewal. For Ibervalles it is essential to adapt to the new demands of the sector by taking advantage of the opportunities offered by the growing interest in tourism".
The General Perón building has a strategic location, close to key developments such as the new Santiago Bernabéu Stadium, the Renazca project and the refurbishment of the Palacio de Congresos de la Castellana, which will be completed in the first half of 2025 and will house the headquarters of the World Tourism Organisation.
In its long-term strategic plan, Ibervalles seeks to diversify its asset types. It currently manages 13 properties and aims to reach 550 million euros in assets by the end of 2025. In the hotel sector, the company estimates an investment of 240 million euros by 2025, with the transformation of the building into a five-star hotel as part of this plan.
