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Hotel W Barcelona, again for sale

The W Barcelona Hotel, popularly known as the Vela Hotel (Spanish name for “sail”) due to its emblematic shape, is once again for sale. With an estimated valuation of 265 million euros, the sale of this prestigious five-star establishment could become one of the most outstanding transactions of the year in the Catalan capital. The hotel, which opened its doors in 2009, is managed by Marriott and is owned by the Qatari sovereign wealth fund, Qatari Diar, who acquired the hotel in 2013.

Designed by the renowned architect Ricardo Bofill, this 27-storey, 473-room hotel represented an investment of approximately 200 million euros, in addition to the 60 to 80 million previously invested by the Port of Barcelona in the construction works. The acquisition by the Qatari fund came about after the hotel had been on the market for almost two years, waiting for a suitable buyer. 

Sovereign wealth funds, such as Qatar's, often acquire hotels with the intention of keeping them in their portfolio for a limited time and then selling them at a higher price. In Spain, Qatari Diar also owns Marina Tarraco, a luxury yacht and leisure complex in Tarragona, acquired for 65 million euros. After a ten-year wait, Qatari investors consider that their investment in the hotel in Barcelona has gone through different cycles and the time has come to reap the benefits.

However, there is another factor that plays an important role in the sale decision: the complexity of the ownership of the land on which the W Hotel building is located. The fact is that the plot, which has an area of 51,000 square meters, was reclaimed from the sea during one of the expansions of the Port of Barcelona. This fact generated controversy with neighborhood and environmental associations, who denounced that the building violated the Coastal Protection Law. In fact, the owner of the land is the Port Administration, which granted in 2006 the rights to use it for a period of 35 years, allowing the construction of a tower, underground parking for 900 places and entrances to the complex. Every year the concession from the government is closer to an end, which introduces some uncertainty about the future of the hotel and may affect its final price.

Although the final sale figure is estimated at 265 million euros, they would consider it a successful deal if any buyer offered around 230 or 240 million. The inclusion of the hotel's commercial premises in the operation will also be a determining factor in the agreement. If the transaction reaches the desired figure, it will become one of the most expensive hotel transactions in the history of Barcelona, surpassing the purchase of the Mandarin Hotel for more than 200 million euros or the acquisition of the Sofia Hotel for 180 million euros.