ActivumSG has completed the sale of the 118-room Palacio Solecio hotel in Malaga. The asset has been purchased by an undisclosed buyer.
Originally an 18th-century Andalusian palace, the historic site had fallen into severe disrepair before being acquired by ActivumSG-advised fund Iberia I for €8M. Working alongside the Tech-Stone Development Services, ActivumSG undertook an extensive and complex restoration process to revitalise the palace and bring it into a state fit for modern-day, full-service luxury hospitality use.
The restoration retained all of the building’s distinctive architecture, with eye-catching historical features including the original staircase and a grand facade adorning the building’s exterior. During a second phase of redevelopment, ActivumSG and Tech-Stone consolidated and developed three additional abandoned plots of land adjacent to the original site. The extension created 50 rooms, a rooftop bar and a swimming pool boasting views over Malaga’s city centre. The original building opened with 68 rooms in 2019 and the second phase opened in 2023.
Totalling over 8,082sq m Palacio Solecio is situated in Malaga’s historic Old Town, near The Picasso Museum and a 10-minute walk from the seafront. The 118-key asset is currently operated by Marugal Distinctive Hotel Management under a Hotel Management Agreement.
Saul Goldstein, Founder and CEO of ActivumSG, said: “This project was a classic ActivumSG investment where we were able to acquire a great site and add value. Here we leveraged our vertically integrated capabilities and revitalised a historic site to create a landmark hotel in one of Spain’s most exciting destinations. Given the slower transactional landscape, this sale demonstrates the clear appetite among investors for high-quality, well-located hospitality assets. Spanish hotels stand as one of our longest-held conviction calls and sits within our current wider focus on the accommodation or living sectors. Across our direct real estate and corporate platform strategies, we believe there are ongoing opportunities in housing, hospitality and elderly care due to a shortage of high-quality options despite rising consumer demand.”
