Acquisition of the 4-star Iberostar Las Dalias hotel in Tenerife for €81 million 

Acquisition of a 4-star hotel in the Canary Islands, Spain’s top tourist destination  

This hotel is located in Tenerife, in the Canary Islands, Spain’s leading tourist destination with 69.7 million overnight stays in 2023 (20% of the national total) and the only non-seasonal leisure destination in Europe, thanks to its temperate climate. Ideally located in the heart of the Adeje coast, the island’s main tourist hub with almost 11 million overnight stays in 2023, the hotel boasts a privileged location (rated 8.8/10 on Booking.com), just 16 km from Reina Sofia airport.  

The property features 429 rooms, a restaurant, 3 bars, 3 swimming pools, a gym, squash and volleyball courts, as well as 2 meeting rooms for up to 140 people. Built in 1985 and refurbished in 2021, it boasts solid environmental credentials, with a carbon footprint of 18.9kg eqCO₂/m²/year in 2023, in line with CRREM¹ targets. 

Acquired for nearly €81 million including transfer duties, with a stabilized yield of 6.75%, the hotel is let to Iberostar on a firm triple-net lease until 2041. 5^th hotel operator in Spain and owned by the Spanish Fluxa family for 60 years, Iberostar operates 110 hotels in over 35 countries.  

2024, a turning point for Covivio in the hotel business 

The year 2024 marks a turning point for Covivio in the hotel sector, after increasing its stake in its subsidiary Covivio Hotels by 8.7% in the first half of the year (to 52.5%) and finalizing in early December the consolidation of operating and property companies held jointly with AccorInvest. 

This is Covivio’s first acquisition of hotel properties since 2020. In line with its ambitions announced at its Capital Markets Day 2024 in Paris at the end of November, Covivio is thus continuing to strengthen its exposure to the hotel sector, particularly in the leisure segment in Southern Europe.   

¹ CRREM: Carbon Risk Real Estate Monitor