Mangia’s Acquires the Grand Hotel et Des Palmes in Palermo

Aeroviaggi SpA, the company behind the Mangia’s hotel chain—one of Italy’s top five hospitality groups by revenue*—has reached an agreement with Algebris NPL Partnership II, an investment fund specializing in the acquisition and development of non-performing loans backed by real estate assets, to acquire the five-star Grand Hotel et Des Palmes, a historic icon of Palermo's hospitality scene. Mangia’s is expected to assume operational control from the current management company by the end of the year.

This centrally located property offers 123 rooms and accommodates up to 250 guests. The acquisition was completed with support from UniCredit, strengthening the established partnership with Mangia’s. Legal assistance for the Mangia family was provided by Gianni & Origoni and CDRA Avvocati, while Algebris was advised by Dentons.

Palermo, the headquarters of the Mangia’s Group, serves as the ideal launch point for Aeroviaggi SpA’s new line of five-star and luxury five-star city hotels, branded as Mangia’s.

Marcello Mangia, CEO of Aeroviaggi SpA, commented: “For a group headquartered in Palermo, adding the Grand Hotel et Des Palmes to our portfolio is a source of great pride and satisfaction. With this acquisition of a historic property in the city, we are taking the first step in our strategic expansion into the five-star and luxury five-star city hotel sector, with plans to extend this concept to other Italian cities, integrating properties of the same high standard.”

Salvatore Malandrino, Regional Manager for Sicily at UniCredit, said: "We are proud to continue supporting the Mangia’s Group in its growth plans. Tourism is a strategic sector for Sicily’s economy, with significant growth potential. UniCredit is committed to supporting the tourism sector and the businesses that drive it.”

The city hotel line is projected to contribute to a Group revenue increase of approximately 12% starting in 2025. Aeroviaggi SpA closed 2023 with revenue of €114 million, marking a 40% increase over the previous year.

To further support the development of its five-star and luxury five-star city hotel line, the hotel chain plans to pursue partnerships with prominent international hospitality brands, as it has done in the past with properties currently in its portfolio, such as Mangia’s Brucoli, Sicily with Marriott International’s Autograph Collection, and Mangia's Santa Teresa Sardinia with Hilton’s Curio Collection. These partnerships will broaden the hotel’s reach, particularly appealing to the luxury five-star international clientele, for whom Palermo and Sicily have a strong allure. Additionally, partnerships with leading brands will be considered for dining and wellness services.

Historically, Mangia’s has expanded its portfolio through acquisitions that included complete or partial refurbishments of properties, followed by repositioning within the market. However, the Grand Hotel et Des Palmes, a late 19th-century Liberty-style property, has already undergone a major renovation funded by Algebris NPL Partnership II. The restoration has combined the building’s historic grandeur with a functional, elegant contemporary design. As a result, the hotel joins the Mangia’s portfolio fully refurbished and well-positioned for immediate marketing and operations, once arrangements for management transition are finalized, ensuring current employment levels are maintained.

Originally constructed in the mid-19th century as a private residence for the Ingham-Whitaker family, historically associated with the Florio family, the property was converted into Palermo’s most luxurious and fashionable hotel in 1874 by entrepreneur Enrico Ragusa. In the early 1900s, architect Ernesto Basile, a leading figure in modernism and Art Nouveau, transformed it into a symbol of Liberty-style art and culture. The hotel hosted many poets, writers, musicians, and aristocrats over the years. In 1881, Richard Wagner completed his composition of Parsifal here; in 1882, Francesco Crispi taught political lessons within its walls; and the hotel is famously remembered for a lavish 12-course dinner served to then-Prime Minister Vittorio Emanuele Orlando in the late 1910s.

*Source: Pambianco Hotellerie, 2023 revenue estimates