Grupo Fagra has expanded its portfolio with the acquisition of the Occidental Castellana Norte Hotel in Madrid, Spain, from European real estate investor Covivio.

Financial details of this off-market transaction remain undisclosed.

This purchase aligns with Covivio's asset quality enhancement policy, focusing on prime locations.

Professional services and investment management company Colliers offered Grupo Fagra advice on this deal.

Colliers Hotels division managing director Gonzalo Gutierrez said: “Madrid is at the top of the priority list for both national and international hotel chains and investors. The city's growth prospects remain very positive, with corporate tourism fully recovered.

“Additionally, the hotel will benefit from the city's future northward expansion and the significant infrastructure improvements planned for this area.”

The Occidental Castellana Norte Hotel, a four-star property, opened in 2008. This hotel has been operated under a lease agreement by Grupo Barceló since its launch.

It houses 144 rooms and includes amenities such as a restaurant, a lobby bar, and three meeting rooms.

Situated at Avenida Manoteras 20, the hotel's location offers easy access to the airport, Chamartín station, and the IFEMA fairgrounds.

Grupo Fagra currently manages five properties under the Zentral Hoteles brand in Oviedo, Zaragoza, Toledo, Valladolid, and Gijón.

Meanwhile, Covivo comprises a portfolio of 313 hotels across 12 countries. It supports hotel chains in their property leasing, operating and development projects.

Last month, Colliers facilitated the sale of the Cathedral Quarter Hotel in St Mary’s Gate, Derby, UK.

Lavendish Leisure, a subsidiary of the Dedigama Group, acquired the Victorian-style property.