The Hotel Roca Negra project, financed by Urbanitae investors in March 2025, has been repaid early through bank refinancing. The transaction closed in a shorter timeframe than initially estimated and with a final IRR of 13.85%, in line with the annual return projected at the time of financing.
With this repayment, investors recover 100% of the capital invested together with accrued interest.
What was the Roca Negra project?
Roca Negra was a debt project linked to the Hotel Occidental Roca Negra, a four-star hotel asset located in Agaete, in the northwest of Gran Canaria.
The loan was intended to finance the acquisition of the majority of the shares held by minority shareholders in the company owning the hotel, as well as to repay outstanding debt with the Barceló operating group. The hotel, built in 2010 and refurbished and expanded in 2021, has 140 rooms and is operated by Grupo Barceló under the Occidental brand.
The asset is located on the seafront, on a cliff overlooking the ocean and the island of Tenerife, within the surroundings of the Tamadaba Natural Park. It also features restaurants, a bar, spa, swimming pool, event center, and underground parking.
A debt transaction with a 14% annual interest rate
The project was structured as a fixed-rate loan, with an agreed annual interest rate of 14% and an estimated term of 22 months. Total financing amounted to €4,955,000, fully provided by Urbanitae investors.
The transaction also included the possibility of full early repayment at any time, subject to a guaranteed minimum return equivalent to 13 months of interest.
Early repayment through bank refinancing
Following the execution of the loan agreement in early March 2025, the hotel continued operating normally throughout the life of the project, without any significant incidents.
At the beginning of 2026, work began on different exit alternatives, including a potential sale of the asset and a bank refinancing process. Ultimately, this refinancing allowed the loan to be repaid ahead of the originally scheduled term.
The project, which initially had an estimated duration of 22 months, was ultimately repaid in 14 months.
Final result for investors
The project’s final figures are as follows:
- Estimated term: 22 months
- Final term: 14 months
- Estimated total return: 25.67%
- Final total return: 16.14%
- Estimated IRR: 14.00%
- Final IRR: 13.85%
The final total return was lower than initially estimated because the project was repaid in a shorter timeframe. However, the final IRR of 13.85% remained practically in line with the projected IRR of 14.00%, reflecting the strong annualized performance of the transaction.
An orderly and early exit
Roca Negra closes successfully, with full repayment of capital and accrued interest, and with an early repayment that shortened the investment period compared to the initial scenario.
The transaction highlights the importance of having flexible exit mechanisms in debt projects, especially when there is potential for bank refinancing or sale of the underlying asset.
