The Reuben Brothers, have formed a joint venture with the Pacha Group and acquired the Hotel Pacha Ibiza, in a sale-and-leaseback transaction.

It has been reported that the brothers were planning to expand the brand around the world with a portfolio of hotels.

The 57-suite 45,000 sq ft building was located in the heart of Ibiza in front of the marina, close to Talamanca Bay.  The hotel featured a restaurant, bar, and event space whilst plans were underway to upgrade the property. The transaction represented the Reuben Brothers’ third investment in Ibiza and added to the 7.3km of coastline they already owned in Cala Conta, Cala Bassa, & Es Calo on Ibiza’s south west coast.

As the deal was announced in Ibiza, the local press was reporting that Pacha Group was planning to expand onto the nearby island of Formentera, with a restaurant, club and apartments.

In 2017 a stake in Pacha Group was sold to a group of investors led by venture capital firm Trilantic Capital Partners for a reported €350m. The deal included the Ibiza venues Pacha, Destino and Lío and the franchise including clubs in Barcelona, Sydney and Munich. It also managed Pacha Sitges, the original nightclub opened by Ricardo Urgell in 1967.

Trilantic said that it would provide additional resources to finance the company’s expansion plan.