Grivalia Hospitality completed the acquisition of the Meli Palace hotel on Crete, real estate investment company Grivalia Properties REIC announced on Tuesday.
Grivalia Hospitality is part of Grivalia Properties REIC and focuses on hospitality assets.
According to Grivalia Properties REIC, the Meli Palace hotel is the first operating asset to be added to the investment portfolio of Grivalia Hospitality.
The luxury hotel comprises 158 rooms within a property of 104,000 square meters of land and is leased to a prominent operator.
Grivalia Hospitality acquired the shares of the company Hellenic Palace S.A., which owns the hotel located on the beachfront of Malia on Crete, through a 100 percent subsidiary.
The pricing paid upon the signing of the share-purchase agreement for the acquisition of the shares of the company net of all liabilities and other assets, is 9 million euros. There is also an additional deferred payment of 2 million euros, payable until 2022 in tranches, as well as an additional payment of 2 million euros subject to the fulfillment of specific conditions.
“Grivalia Hospitality is further evaluating other investments in the hospitality sector as part of its vision to create long-term value for its shareholders, its people and the local communities,” Grivalia Properties REIC said.
In March, Grivalia Hospitality acquired 80 percent of Nafsika S.A., which holds the long-term lease of the Asteria property in Athens’ seaside district Glyfada. The acquisition came after Grivalia announced plans to redevelop the property’s legendary “Asteria” hotel complex into a super luxurious resort, aiming to upgrade the seafront side of Attica and attract top quality tourism.