Grupo Fagra has purchased the Occidental Castellana Norte Hotel from Covivio in an off-market deal.
Located at Avenida Manoteras 20 in the northern business district of Madrid, the 4-star hotel comprises 144 rooms, a restaurant, a lobby bar and three meeting rooms.
Since it opened in 2008, Occidental Castellana Norte Hotel has been operated under lease by Grupo Barcelo.
The transaction marks Grupo Fagra's entry into Madrid. Currently, the group manages five properties under the Zentral Hoteles brand located in Oviedo, Valladolid, Zaragoza, Toledo and Gijón, all of which are owned. In addition, the parent company to which the group belongs owns the Diego de Almagro hotel chain which has more than 38 hotels across Chile.
Colliers advised Grupo Fagra on the transaction.
What they said
Gonzalo Gutierrez, managing director of the hotels division at Colliers said: “Madrid is at the top of the priority list for both national and international hotel chains and investors. The city's growth prospects remain very positive, with corporate tourism fully recovered. Additionally, the hotel will benefit from the city's future northward expansion and the significant infrastructure improvements planned for this area.”