Premia Poperties buys two 4-star hotels for €112.5 million
Premia Properties’ deal to buy two hotels in Kallithea, Rhodes, and Ierapetra, Crete, will significantly improve its finances, besides expanding its property portfolio.
The hotels are the 534-room Sunwing Kallithea Beach and the 262-room Sunwing Makrigialos & Ocean Beach Club, a 4-star hotel in Ierapetra. The seller, Swedish company Nordic Leisure Travel Group, will continue to operate the hotels but will lease the properties from Premia, for an initial period of 15 years with an option for a further 10.
Premia will finance the €112.5 million deal with its own funds plus a corporate bond to be underwritten by National Bank of Greece. The deal, which will be finalized by the end of the year, will raise the value of Premia Properties’ portfolio above €500 million, while rent income will increase by about €8.5 million, to over €35 million.
“We were interested in entering the hospitality market through the acquisition of hotels,” Premia CEO Kostas Markazos told Kathimerini. “These units serve our strategy and are in the category, 4-star, we had targeted. (We did not want) luxury hotels so much, because they because we consider them very volatile,” he added.
Markazos further noted that the two hotels are right on the beach, something that new construction cannot offer due to building code restrictions. Both hotels have been recently renovated.
