Sercotel (Spain) - Jan 2008

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01 January 2008

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Grupo Corporativo Landon has acquired a 47% stake in Spanish hotel chain Sercotel. The expansion deal came as the result of a long-standing relationship between Landon and Sercotel’s founding partners. The deal involves no debt and was completed in three months. Landon had previously invested in the hotel sector and was eager to pursue investments in a sector that, in Spain, has the potential for consolidation.

Company

Barcelona-based Sercotel was founded in 1994 by Marisol Turró, Javier Garro and Bejamín Sanz. It operates 135 hotels in 76 destinations across Spain, Portugal and Andorra. The company initially enabled small hotel owners to put their resources together to better market and position their facilities, thus allowing them to compete on a similar footing with larger hotel chains. Sercotel reported a turnover of €8.5m in 2007 with the consolidated turnover reaching approximately €370m. In 2008 the company projects an 8% sales increase in the consolidated estates of all the hotels in the chain. The investors’ strategy is to increase the geographic coverage of the chain through the inclusion of new establishments. Similarly, the plan also entails the construction and operation of wholly owned hotels alongside the aforementioned business area. The company has recently acquired five hotels in Zaragoza, Albacete, Logroño, Barcelona and Montcada and this figure is projected to increase to 10 in the coming months via the acquisition of five other hotels in Valencia, Murcia, Bilbao and Seville.

People

Jose Rodriguez Pousa led the deal for Landon.

Sourced from: Southern Europe unquote" 71 (Feb 2008)