Netherlands-based hotel operator, investor and developer Borealis Hotel Group has formed a joint venture with Spanish hotel management company Panoram Hotel Management. The joint venture will serve as a vehicle to generate new business opportunities in the sector and strengthen the presence of international hotel groups in Spain at a time when the situation in the Spanish industry offers them important development opportunities.

The transaction also serves as a means to facilitate Borealis' expansion in Spain. Its business model, as an asset owner, focuses on partnerships with international brands, such as Accor, Hilton, IHG, Marriott, Hyatt and Choice.

It currently has 27 leased hotels in the Netherlands, Belgium, Germany, Denmark, Austria, France and Spain, and a development portfolio that also covers Italy, Portugal and the Nordic countries.

Generating synergies
The creation of the joint venture is a new step in the relationship between the two companies, which have already collaborated on projects like the Hampton by Hilton Barcelona Fira Gran Vía hotel and two other hotel assets in the city of Málaga, which are expected to open in 2025. The joint business model will seek to optimise the complementary activities of both companies to generate synergies, as well as streamlining and optimising processes and resources.

Through their partnership, Borealis and Panoram aim to provide a dynamic and innovative business model to their institutional and family investors, as well as to hotel asset owners. Efficiency and value for money will be a priority in all phases of project development. The Dutch company will in turn be able to offer long-term leases with well-balanced collateral to satisfy the demands of some institutional investors.

Strong growth ambitions
Borealis Hotel Group's co-founder, Lodewijk van der Meulen, flags its strong presence in Europe and its strong ambitions for growth and explained, “We see a huge untapped potential in Spain to increase the presence of international branded hotels and therefore expand our portfolio. By creating a joint venture with Panoram, a leading management company that shares the same values, professionalism and entrepreneurial spirit, we are confident that we can offer a solution for every stakeholder in the hotel industry in Spain and achieve our goals.”

Guillermo Pérez Palacios, CEO of Panoram Hotel Management, also reviewed the transaction, “Currently, international hotel brands have a limited presence in Europe. 70% of the hotel market in Spain is in fact occupied by smaller brands and family offices. With only 30% market presence, international brands do therefore have enormous growth potential.”

Regarding the creation of the joint venture, Pérez Palacios added, “We are in an ideal context, and that is why Panoram and Borealis are joining forces as two perfect and complementary partners to develop a business model capable of boosting the Spanish hotel industry as an attractive option for renowned international hotel groups.”

^{Photo: Borealis}