Silken Hoteles early redeems the financing obtained from FONREC

In a shorter term than contractually foreseen, the Fund for the Recapitalization of Companies affected by COVID-19 (FONREC) has received the full repayment of the loan it granted to Silken Hoteles in the amount maximumof €22.5M and whose drawdown was €18M.

This early amortization answers to the favorable economic performance of Silken Hoteles, which in 2023 recorded an 18% increase in sales compared to 2022.

FONREC was created in 2021 by the Government to provide temporary financial support to small and medium-sized companies that suffered severely from the effects of the crisis generated by COVID-19, so that they could maintain their economic activity and employment and gradually recover the viability path they showed before the pandemic. The management of the fund was entrusted to COFIDES.

COFIDES director-general, Miguel Tiana, stated that "the successive early repayments obtained by FONREC show that the fund provided decisive support to many companies. FONREC funding enabled them to overcome the most acute effects of the pandemic, at a time when they had no access to other sources of funding. Progressively, many of the companies have been experiencing a solid improvement and, in the most outstanding cases such as Silken Hoteles, they have proceeded to fully repay the financing received before the foreseen deadlines."

Javier Villanueva, CEO of Silken Hoteles, highlighted that "we are very pleased to be able to announce the full repayment of the financing granted during the pandemic. Silken Hoteles closed last year with a turnover of almost €120M, with a growth in sales of 18% over the previous year and 21% more than in 2019. It is very pleasing to be able to say that, after the pandemic, Silken has grown in turnover, number of premises and number of employees; important data considering the mix of our business model in which we combine owned, managed and leased hotels."

FONREC EARLY REDEMPTIONS

With this repayment, FONREC has accumulated to date close to €80M in recoveries for early repayment of the financing granted.

Specifically, nine companies have already repaid all the financing they received in less than the contractually established term (for an aggregate amount of €76M), while another four have made partial repayments (for a total amount of €7.5M) of the financing they obtained. In addition, the Fund has collected amounts in accordance with the agreed repayment schedules.

ABOUT SILKEN HOTELES

SILKEN HOTELES,with headquarters located in Vitoria-Gasteiz and with national projection, offers more than three thousand rooms and generates more than one thousand two hundred direct jobs. With 33 premises and 29 destinations, SILKEN HOTELS plans to continue growing not only in urban business models but also, and increasingly so, in leisure and enjoyment destinations.

SILKEN HOTELS, which has recently undergone a comprehensive rebranding, is enhancing and positioning the Silken brand, but without losing sight of the personality of each hotel. Sustainable, unique establishments, focused on the business sector, but without forgetting leisure, unique spaces where you can relax and enjoy the local gastronomy.

SILKEN HOTELS is a company committed to sustainability. Therefore, among other initiatives, they are working on decarbonization, energy improvement and efficiency and the electrification of all establishments to become a company that walks in green. In addition, the company is preparing the international leap, following its new openings in 2024.

ABOUT COFIDES

COFIDES is a state-owned commercial company specialized in managing State funds that provides financing for private investments to achieve various public policy objectives. For over three decades, it has been managing resources aimed at supporting the internationalization of Spanish companies, and since 2021, the FONREC, a fund aimed at strengthening the solvency of Spanish companies severely affected by the COVID-19 pandemic. COFIDES has been assigned the direct management of two new financial instruments: the Co+-investment Fund (FOCO), to attract foreign investment to Spain in activities mainly linked to green and digital transitions, and the Social Impact Fund, aimed at reinforcing the national ecosystem of impact investment. Additionally, COFIDES supports the Spanish Agency for International Development Cooperation (AECID) in managing financial cooperation resources. The Spanish state owns 53% of the capital, while the remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and the Development Bank of Latin America and the Caribbean (CAF).