The Swiss management company Limestone Capital has bought the Axel Madrid hotel from the operator HIP, controlled by the US fund Blackstone.
Specifically, the hotel acquired by Limestone Capital, the company's first in the city of Madrid, is located at 49 Calle de Atocha, in the Centro district, situated between Plaza Mayor and Park Retiro.
Although the amount of the transaction has not been disclosed, the starting ask price was around 35 million euros. The real estate consultancy firm JLL has advised HIP on the transaction.
With a total of 88 rooms, the hotel opened its doors in the summer of 2017 under the management of Axel Hotels, a company founded two decades ago by Juan Juliá and HIP.
This is Limestone's second deal in Spain, after it acquired the former Mar y Pins hotel in Mallorca in September 2021, which it transformed into a five-star hotel with more than fifty suites. The Swiss asset manager said in a statement that "recognising the tremendous potential of this prime location, Limestone Capital plans to continue to expand its potential value in the future".
Benjamin Habbel, CEO of Limestone Capital, expresses his enthusiasm for this acquisition, stating, "This acquisition represents a great milestone for Limestone Capital by expanding our presence in Spain and adding another urban destination to our European portfolio. We are deeply committed to the growing hospitality sector in Europe and actively exploring numerous avenues for value-add acquisition and growth."
Limestone Capital Co-founder Jeff Coe adds, "Madrid has shown strong growth in the hotel real estate market over the past few years, and that growth will continue by being a key European Capital and gateway city to the Americas. We are actively looking for unique assets in unique locations, and this hotel in Madrid fits perfectly within that strategy”.
