Singapore invests in Sani/Ikos

Greek hotel group Sani/Ikos has secured the entry into its equity capital of one of the largest international institutional investors, Singaporean sovereign wealth fund GIC.

For the transaction, which concerns the planned seven-year divestment by Oaktree, Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE, the Sani/Ikos group was valued at 2.3 billion euros. These investors are now replaced as the majority shareholder by GIC, while the founders, Stavros and Andreas Andreadis, as well as Mathieu Guillemin, will retain their participation in the group as well as the management.

Market sources estimate that the exit of the investment funds was made with very large capital gains, highlighting it as one of the most successful investments in Greece: Back in 2015, when the investors entered its share capital, the turnover of the group was in the order of €88 million. Today, seven years later – a typical investment horizon for such funds – the group is expected to end the 2022 financial year with sales of €319 million, almost four times the initial turnover. At the same time, it has also quadrupled its assets.

Kathimerini understands that this year the occupancy of the hotels for the entire season – i.e. from April to October – is of the order of 95%, while in terms of performance it has exceeded that of 2019 by 57%, though with an extra hotel.

Even more important, however, is the fact that with this agreement the Sani/Ikos group finds in GIC the partner it needs to proceed with the implementation of its new development plan, with a budget of €900 million. It has a completion horizon of 2027 and aims to further increase its financial size and its footprint in the Mediterranean luxury hotel market.

Since 2015 the Greek group has added 3,600 new employees, while with the new investment plan it is expected to add an additional 2,900 employees over a five-year horizon.

Through its brands Sani Resort and Ikos Resorts, the Greek group develops and operates over 2,750 rooms in 10 privately owned hotel complexes in Greece and Spain.