The French REIT strengthens its hospitality portfolio by acquiring the Iberostar Las Dalias under a triple-net lease until 2041.
Paris-listed Covivio Hotels, a subsidiary 52.5% owned by Covivio, has acquired the Iberostar Las Dalias, a four-star hotel on Tenerife’s Adeje Coast, for nearly €81 million. This strategic move marks another step in Covivio’s push to grow its hospitality business across Southern Europe.
The 429-room Iberostar Las Dalias offers a wide array of amenities, including a restaurant, bars, sports facilities, and meeting spaces. Built in 1985 and recently refurbished in 2021, the property also aligns with CRREM sustainability targets as of 2023. The hotel is located just 16 km from Tenerife’s Reina Sofia airport, making it a prime destination for international travelers.
This acquisition reflects a stabilized yield of 6.75% and solidifies Covivio’s presence in the region. The property is secured under a triple-net lease with Iberostar until 2041, ensuring long-term revenue stability.
Covivio has been on a roll in 2024, also acquiring 43 hotels in France, Belgium, and Germany as part of an €800 million asset swap with AccorInvest. These moves highlight Covivio’s commitment to expanding its footprint in key European markets while focusing on sustainability and strategic investments.
Advisors CBRE and Savills facilitated the sale, representing Starwood Capital.
