Partners Group Acquires Majority Stake in Spain’s BLUESEA Hotels

Acting on behalf of its clients, Partners Group, one of the largest firms in the global private markets industry, has acquired a majority stake in BLUESEA Hotels, a hospitality platform in Spain, in partnership with Portobello Capital, a leading independent mid-market private equity firm.

Headquartered in Palma de Mallorca, BLUESEA specialises in the three- to four-star hotel segment in Spain, operating a portfolio of 25 hotels with around 5,100 rooms. The hotels are located in popular tourist destinations, including the Balearic and Canary Islands, Costa Brava, Costa del Sol, and Madrid, and offer affordable all-inclusive holiday packages.

Partners Group has thematic conviction in BLUESEA’s portfolio due to Spain’s enduring popularity as a holiday destination, the growth in affordable travel and related infrastructure, and increasing consumer purchasing power.

More widely, the number of hotel rooms under construction is estimated to have fallen nearly 8.5% from a 2019 peak, with supply expected to remain muted for the next five years. This structural supply and demand imbalance should underpin strong revenue growth for asset owners and is a compelling long-term tailwind for the hospitality sector globally.

In line with its entrepreneurial governance approach, Partners Group will take a seat on BLUESEA’s board of directors. Alongside the management team and Portobello, Partners Group will oversee transformational value creation initiatives across BLUESEA’s portfolio, including the refurbishment of existing sites, the expansion of ancillary service offerings, operational efficiency improvements, and the acquisition of new hotels.

Building Global Hospitality Portfolio

The acquisition of BLUESEA demonstrates Partners Group’s intention to further increase its exposure to hospitality, which is a high conviction sector for the firm that is benefiting from multiple thematic tailwinds.

The hands-on ownership style required to be successful in the hospitality sector fits closely with Partners Group’s focus on transformational investing. In line with the increasing operational intensity of the sector, Partners Group has been looking to amplify its vertical depth through investments in specialist fund managers and operators.

Earlier this year, Partners Group acquired a strategic stake in Trinity Investments, a leading US-based hospitality-focused real estate investor. It has since made three acquisitions with Trinity, including most recently when a joint partnership between Partners Group and Trinity, alongside funds managed by Oaktree Capital Management, agreed to acquire The Standard, London, an iconic 266-key hotel in the Brutalist-style.

Partners Group’s hospitality portfolio also has assets in the US, France, and Australia, including the Ritz-Carlton Las Colinas, the only luxury golf resort in Dallas; CGH Residences, a hotel, chalet, and wellness resort brand in the Alps; and a portfolio of Accor and Ibis hotels across Sydney and other metropolitan areas in Australia.

Stephen McCall, Managing Director, Head of Real Estate Platforms & OpCos, Partners Group, said that hospitality has been is one of their global high-conviction strategies. The operationally intensive nature of the sector offers significant value creation potential and fits well with the Group’s focus on transformational investment.

“This approach requires an entrepreneurial mind set together with a deep understanding of brand, consumer behaviour, and local market dynamics. We have made it a priority to build vertical depth through our strategic operator relationships, local presence, and globally integrated platform and continue to look for investment opportunities across the segment,” Stephen said.

Partners Group’s global real estate portfolio has a total Gross Asset Value (GAV) of $43 billion. It is one of the largest firms in the global private markets industry, with approximately $150 billion in assets under management.