UPDATE 29/10/2026: On 13 October, we launched the Holiday Inn Express II project, with a €1 million investment tranche that was successfully fully funded. Following the strong interest shown by investors, the developer has authorised us to increase the transaction by a further €1 million. This third tranche of the project will open for investment on Tuesday, 3 November at 16:00 (UTC+1) on the platform. You can watch the project webinar on our YouTube channel.
UPDATE – 8 October 2026: On 22 September, we launched the Holiday Inn Express project, with a €1 million ticket, which was completed with great success. Due to the interest shown by investors, the manager has authorised us to increase the transaction by an additional €1 million. This second ticket for the project will open on the platform on Tuesday, 13 October at 16:00 (UTC+2). You can watch the project webinar on our YouTube channel.
Next Thursday, 24 September at 16:00 h (UTC+2), we will open for investment the Holiday Inn Express Madrid Sur project, a new capital gains opportunity to develop a 210-room hotel in the Mercamadrid area of Madrid.
The strategy involves acquiring the plot, building the hotel, bringing it into operation, reaching a stabilised level of activity and finally selling the asset to an institutional investor.
The project has an initial Urbanitae ticket of 1,000,000 euros and an estimated term of 44-48 months.
- Opening for investment: Thursday, 24 September at 16:00 h (UTC+2)
- Project webinar: Tuesday, 22 September at 16:30 h (UTC+2)
A newly built Holiday Inn Express
The project plans to develop a newly built hotel under the Holiday Inn Express brand, belonging to IHG Hotels & Resorts.
The establishment will have 210 rooms, a built area of 10,184 m² and 114 parking spaces. It will also include a bar and restaurant, gym, terraces, lounge areas and an outdoor swimming pool.
The hotel will be located in the Mercamadrid area, in Vallecas, with quick access to the M-40 and M-45 and close to activity hubs such as Mercamadrid, Hospital Infanta Leonor, Atocha and Adolfo Suárez Madrid-Barajas Airport.
This is a corridor with high logistics and business activity, but with a more limited hotel offering than other areas of Madrid.
A different strategy from residential
Unlike a residential development, in this case value creation does not end when construction is completed.
Once built, the hotel must open and begin operating until it reaches a stabilised operating level. Only then is its sale to an institutional investor planned.
That is why the estimated term, 44-48 months, is longer than usual in many Urbanitae residential projects: it includes acquisition, licensing, construction, opening, initial operation and divestment.
The current forecast places the hotel opening during the first half of 2029 and the sale of the asset in the fourth quarter of 2030.
Three specialised partners
The transaction brings together different specialists for each phase of the project.
Continuum Hospitality Group will participate as an advisory partner and will be responsible for hotel management. The group has around 300 million euros in assets under management and a portfolio of 18 hotels and nearly 2,500 rooms.
The hotel will operate under the Holiday Inn Express brand through a franchise agreement with IHG Hotels & Resorts.
For its part, Alta Real Estate will act as delegated developer and main contractor. The development will be carried out under a turnkey contract, with fixed price and deadline, guarantees and penalties. This structure aims to reduce the risk of cost and schedule deviations during construction.
What does an LTV of 42% mean in an equity project?
Although Holiday Inn Express Madrid Sur is an equity project, the capital contributed by the partners is expected to be complemented with bank financing to develop and build the hotel.
This is why the LTV – loan to value – is also relevant, a very common indicator in debt transactions that compares the loan amount with the value of the asset.
The project contemplates a target LTV of 42%. In other words, the planned bank debt would represent approximately 42% of the asset value, while the rest of the financial structure would mainly be covered with equity.
A lower level of leverage reduces dependence on debt and provides greater room for manoeuvre in the face of possible variations in the hotel’s final value.
ADR and hotel value
In a hotel asset, one of the fundamental indicators is the ADR – Average Daily Rate–, that is, the average daily price at which occupied rooms are sold.
ADR, together with the occupancy level, determines a large part of the revenue the hotel can generate. In this project, the operating assumptions have been tested through independent commercial due diligence.
The Holiday Inn Express brand also plays an important role: it provides international recognition, distribution and access to IHG’s loyalty programme, factors that can facilitate customer acquisition and direct sales.
An exit yield of 7.5%
Another relevant concept is the exit yield, the return that a buyer would require when acquiring the hotel once stabilised.
This variable directly influences the sale price: the higher the yield used, the lower the resulting value of the asset, assuming equal operating income.
The favourable scenario of the project uses an exit yield of 7.5%, proposed as a conservative assumption to calculate the divestment price. The moderate scenario raises that yield to 9.38%, consequently reducing the estimated sale value.
Investment structure
The project requires total equity of 10.21 million euros.
External investors will contribute 8.475 million — of which Urbanitae initially participates with 1 million euros — and investors linked to Continuum Hospitality Group will contribute a further 1.735 million.
In addition, bank financing is expected to be incorporated. Indicative terms have already been received for the developer mortgage loan.
Why invest in Holiday Inn Express Madrid Sur
We believe that Holiday Inn Express Madrid Sur may be an interesting investment opportunity because it combines an international hotel brand, a well-connected location in Madrid and a clear value creation strategy: develop the hotel, bring it into operation and sell it once stabilised. In addition, the project has specialised partners in development, construction and hotel management, as well as a prudent financial structure.
The main highlights of the project include:
- Newly built hotel with 210 rooms in Madrid.
- Operation under a recognised international brand, Holiday Inn Express.
- Turnkey contract with fixed cost and deadline.
- Specialised partners in development, construction and hotel management.
- Target LTV of 42%, with a moderate level of leverage.
- Operating and exit assumptions tested through independent due diligence.
- Strategy focused on the sale of a stabilised asset to an institutional investor.
Estimated timeline
The expected term is 44-48 months.
The main milestones are:
- Fourth quarter of 2026: investor entry and acquisition of the plot.
- Second quarter of 2027: expected licence approval and start of construction works.
- First quarter of 2029: expected completion of construction.
- First – second quarter of 2029: hotel opening.
- Fourth quarter of 2030: expected sale of the asset and distribution of profits.
You can consult the project page for all the information on the transaction, its risks, economic scenarios, due diligences and associated documentation.
Do you have questions about the project?
You can ask your questions in the webinar on Tuesday, 22 September at 16:30 h (UTC+2).
The opening for investment of Holiday Inn Express Madrid Sur will be on Thursday, 24 September at 16:00 h (UTC+2).
You can also write to us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
