Repositioned as a next-generation wellness and lifestyle destination, with phased branded residential development layered on top.
Villa Padierna Palace is a 149-key hotel set across 1,000 acres on the Costa del Sol, currently operating below its potential relative to comparable Marbella assets.
Paired with Thermas de Carratraca—a 43-key thermal wellness retreat—this is an integrated platform with three golf courses, a 2,000m² spa, eight F&B outlets, and adjacent land for ultra-luxury residential development.
The asset is being acquired at below replacement cost, with a clear, executable plan to close the gap between where it trades today and where it belongs.
Marbella, Spain
A control acquisition of one of Southern Europe's most recognizable ultra-luxury resort platforms.
Investment
Highlights
- Institutional-quality asset acquired at below replacement cost, with significant gap to comparable Marbella peers
- Villa Padierna currently operates at ~€430 ADR and 63% occupancy — peers like Marbella Club and Puente Romano run €650–1,200 ADR at 70–75% occupancy
- Three golf courses, a 2,000m² spa, beach club, racquet club, eight F&B outlets, and a 1,000-person event amphitheater — amenity base that supports meaningful rate and yield growth
- Thermas de Carratraca adds a 43-key thermal wellness retreat with its own revenue profile and brand differentiation
- Adjacent land provides development rights for phased ultra-luxury villa and condo-hotel development — upside that is real but not required for base case returns
- Marbella is an established UHNW destination with structural demand from European, American, and Gulf buyers and limited supply of integrated resort communities at this scale
- Seller alignment materially reduces execution risk — structured rollover and financing keep interests aligned through the hold period
Value Drivers
ADR Growth
The single largest value lever. Moving from €430 to a target of €700–750 — in line with repositioned peers — adds approximately €5.2M in EBITDA on its own. The gap exists because of underinvestment in brand and product, not location or amenity base.
Occupancy Optimization
Improving from 63% to a stabilized 70–72% through better demand management, programming, and commercial strategy adds another €1.8M. Neither number requires outperforming the market — just closing the gap to it.
F&B, Spa & Events
Eight food and beverage outlets, a 2,000m² spa, and a 1,000-person amphitheater are currently undermonetized. Targeted programming and operational improvements across these channels contribute a combined ~€1.9M in incremental EBITDA by Year 5.
Residential Development
Phase 1 targets 25–30 ultra-luxury villas at an average selling price of ~€7.5M, with a gross development value of ~€225M. Construction begins only after ~70% presales are secured. The residential component is structured in a separate SPV — upside without cross-deal exposure.
EBITDA Outcome
Combined EBITDA grows from €5.5M at acquisition to ~€17M by Year 5 across the hotel platform — with residential monetization providing additional return acceleration in the upside case.
Structure Options
Structure GP/LP partnership via dedicated SPVPreferred Return: 8%Promote: 70/30 (LP/GP)Governance: Board control + reserved matters
Capital Stack Senior Debt: ~55% LTVSeller Rollover: ~15–20%Seller Financing: ~5–10%Equity: ~20–25%
Investment Terms Total Equity: ~€60MMinimum Ticket: €1MCo-investment opportunities available on this and future platform deals
Capital is called at deal close. There is no blind pool structure — you know the asset, the underwrite, and the terms before any capital is deployed. Early investors in the platform receive priority co-investment rights on each new deal as the portfolio grows.
Timeline
The phasing below reflects Terra Maris' planned execution sequence for the Villa Padierna platform.
Year 0–1 — Acquisition, Design & Permits
Close acquisition, finalize renovation scope, engage local advisory, secure planning approvals for residential development.
Year 1–3 — Renovation & Phase 1 Launch
Execute targeted capex repositioning across rooms, spa, and F&B. Launch Phase 1 residential marketing and presales. Begin construction after ~70% presales secured.
Year 3–5 — Stabilization & EBITDA Growth
Hotel reaches stabilized occupancy and ADR targets. Thermas de Carratraca fully operational. EBITDA grows toward ~€17M combined. Phase 1 villa completions and sales recognized.
Year 6–7 — Exit
Exit to institutional buyer — sovereign wealth fund, global hospitality REIT, UHNW family office platform, or luxury branded operator — at stabilized cap rates of 6.5–7.5%. Assumed hotel-only exit value of €225M–€260M+.
