Starwood Capital Group and Melia Hotels International have agreed to acquire seven beachfront hotels (2,933 keys) in Spain through a new joint venture, according to a news release. Melia, the current owner of the hotels, will continue to manage the properties upon completion of the transaction, which is valued at $198 million. A controlled affiliate of Starwood Capital will own 80 percent of the joint venture company, while Melia will own the remaining 20 percent. The initial portfolio includes the Sol Principe in Malaga, the Sol Lanzarote and Melia Gorriones (Fuerteventura) in the Canary Islands, the Sol Ibiza and Sol Pinet Playa in Ibiza, and the Sol Mirlos and Sol Tordos (Palmanova, Mallorca). The hotels will be fully refurbished.
