Canillo Wellness Retreat

The opportunity

Asset overview

Canillo Wellness Retreat is a ground-up development of a 48-key boutique hotel with a 600 m² destination spa, signature restaurant, rooftop terrace, and ski-concierge services. The asset is positioned at the base of the Soldeu–El Tarter access road, giving guests direct access to Grandvalira — Europe's largest ski domain — and strong year-round demand from wellness and mountain leisure travellers. The property will be operated under a white-label management agreement with a European boutique hospitality group.

Why invest

Investment thesis

Andorra's hotel market has structurally underperformed on key count per tourist, creating a persistent supply gap in the 4 and 5-star wellness-led segment. ADRs in the parish have grown at a 7% CAGR over the last five years and occupancy regularly clears 80% in the winter season. The combination of development-phase fixed income, stabilised NOI yields post-opening, and a clear institutional exit path via sale to a European hotel fund makes this one of the more resilient opportunities in our current pipeline.

Deal strengths

Why this deal

• Planning permission granted and construction permit issued
• Lead contractor appointed under guaranteed maximum price contract
• Operator agreement signed — revenue share structure
• Direct access to Grandvalira — Europe's largest ski domain
• Year-round hospitality demand — not seasonal
• Target stabilised NOI yield of 7–9%
• Clear institutional exit to European hotel investment funds

Capital deployment

Use of funds

Capital structure

Capital stack

Timeline

Project milestones

Liquidity

Exit strategy

Primary exit is a sale to a European hospitality investment fund or regional hotel REIT 18–24 months after stabilisation (target Q2 2029). A refinance-and-hold option at stabilisation is available if market conditions favour it, returning a portion of investor capital while maintaining cash yield exposure.

Risk disclosure

Key risks

• Hospitality markets are sensitive to macro-economic cycles
• Operator execution risk during ramp-up to stabilisation
• Construction cost inflation above contingency reserves
• Exit multiple compression if hotel capital markets soften at exit
• Longer hold period than residential developments

Documentation

Due-diligence pack

• Confidential Information Memorandum (CIM)
• Hotel operator agreement (redacted)
• STR market report & comp set analysis
• Financial model with scenario sensitivities
• Independent feasibility study
• Legal due diligence pack
• Construction contract (GMP basis)

Compliance & structure. Investment is made through an Andorran SPV holding the freehold asset. A hotel management agreement sits below the SPV. Investors are subject to standard KYC, AML, and source-of-funds checks. This opportunity is limited to accredited and professional investors only.