Urbanitae Completes the Second Million for the Holiday Inn Express in Vallecas, Twelve Times Slower Than the First

25/10/2026 – ⏱ 2 min · By Realty Investor Editorial Team

570 investors covered the €1,000,000 tranche in twelve days, with the land still under a deposit contract and the building permit not yet granted

This article is for information purposes only and does not constitute investment advice or a recommendation of any kind.

The Holiday Inn Express hotel planned next to Mercamadrid, in Vallecas, has raised another €1,000,000 on Urbanitae, this time over twelve days. It was covered by 570 investors, with an average ticket of €1,754 and a pace of around €58 a minute. The first tranche, of the same size, closed in a single day on 25 September with 499 investors and €694 a minute: twelve times faster and with a higher ticket. With this tranche, the platform completes the €2,000,000 it had committed to the deal.

The project is a hotel of 210 rooms and 10,184 m² of built area beside the M-40 and M-45 motorways. It will be operated by Continuum Hospitality Group under an IHG franchise, and the delegated developer and contractor is Alta Real Estate, under a turn-key contract at fixed cost and fixed time: on a new build, that is what takes the most risk off the project.

What is still outstanding is more striking. The land does not yet belong to the project: there is a deposit contract and the purchase is expected this fourth quarter. The building permit, applied for in July, is expected in the second quarter of 2027. And the bank financing is not closed, only indicative terms: the 42% LTV is a target, not a contracted figure. The timetable points to completion in 2029 and a sale in the fourth quarter of 2030.

It is worth understanding what they have bought, because it is not a loan. It is a capital increase: they come in as shareholders of the special purpose vehicle Pendragon, which in turn increases capital in the developer HIEX Madrid Sur Hotel. There is no interest, no payment schedule and no real security, and the bank loan to be taken on will rank ahead of the shareholders. Total equity is €10,210,000, of which €8,475,000 comes from investors and €1,735,000 from the hotel operator; Urbanitae's participation may reach €5,000,000. Instead of a return, the platform publishes three scenarios, and the most adverse contemplates a partial loss of capital.

Investing in real-estate crowdfunding carries the risk of losing part or all of the capital: the money is locked up until the asset is sold, the outcome is not guaranteed and there is no deposit guarantee fund cover. As this is equity and not debt, there is no security behind the investment, and the pace of a fundraise says nothing about how the deal will end. Non-sophisticated investors have four calendar days to withdraw their offer without penalty.

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