With tourism figures rising, demand for hotels throughout Europe is again picking up. Here we list four prominent hotel deals in Greece, Spain, Portugal and the UK, over the last month. They include 18 hotels in the acquisition of an investment management portfolio.
18 hotels and three golf courses in investment management portfolio deal
Location and details: A consortium led by investment funds advised by Davidson Kempner Capital Management LP, involving operating partners Highgate and Kronos, has acquired Portuguese investment manager ECS Capital. Its real estate portfolio features 18 hotels and also three golf courses including the five-star Palacio do Governador in Portugal, the 154-room Conrad Algarve, and the 176-room Hilton Vilamoura As Cascatas Golf Resort & Spa. It also includes other Portuguese companies, with 65 hospitality, residential and commercial properties mainly in the Algarve and development land.
Seller: ECS Sociedade Gestora de Fundos de Capital de Risco
Buyer: Consortium led by investment funds advised by Davidson Kempner Capital Management LP
Key quote: Davidson Kempner, founder and CEO of Davidson Kempner Capital Management, says, “The transaction represents an exceptional opportunity for ECS to build on its many years of success as a leading investment manager in the Portuguese private equity sector, and the Consortium is excited about the opportunity to invest in and grow the platform and portfolio of assets over the coming years.”
Corn Exchange with hotel sold
Location and details: The historic Corn Exchange in Manchester, UK, which includes a Roomzzz apart-hotel, has been sold by Aviva Investors. The building dates from 1837. It put on the market for around £43 million last year.
Seller: Aviva Investors
Buyer: Private investor
Key quote: Will Andrews of KLM Real Estate says, “Aviva’s asset enhancement and placemaking at the scheme over many years created this jewel of a leisure asset. As a result, we were able to generate strong investor demand despite the headwinds that the leisure market and consumers are facing at the moment.”
Standard Hotel bought from property investors
Location and details: Schroeders Capital has acquired The Standard Hotel in Ibiza, from KKR Property Investors, for a fee believed to be around €65m, according to EjePrime. The hotel on Paseo de Vara de Rey, which opened in January 2022, has 67 rooms. It was conceived and designed by Spanish artist Lázaro Rosa-Violán. Interior design is by Oskar Kohnen.
Sector: Hotels and resorts
Buyer: Schroeders Capital
Seller: KKR Property Investors
Price: Around €65m
Key quote: Benjamin Chiche, Investment Director of Real Estate Hotels at Schroders Capital, says, “We were attracted by the combination of a newly-built property in an excellent location with the power of The Standard brand behind it. Schroders Capital currently manages 55 hotels across Europe with a significant exposure to the luxury lifestyle end of the market. This depth of experience in operating real estate makes Schroders Capital a preferred buyer for sellers of such assets and in this instance allowed the transaction to complete within four weeks.”
Five-star Greece hotel sold
Location and details: The White Coast Pool Suites is a five-star hotel on the Greek island of Milos, near Sarakiniko beach. It has been sold to Prodea Investments (49%) and Invel Real Estate (51%). It features 30 suites, each offering a private pool and uninterrupted sea view. Invel and Prodea plan to expand the hotel, transforming it into one of the leading private-pool hotels in the Aegean whilst also preserving the natural beauty of the Cycladic landscape. Currently branded as Small Luxury Hotels of the World, the property will be operated by Domes Resorts.
Sector: Hotels and resorts
Buyers: Prodea Investments (49%) and Invel Real Estate (51%) through its discretionary fund Invel Eudora Fund 1LP. Eudora 1 is now fully invested. Invel is now embarking on the launch of “Invel Eudora Fund 2 S.C.S, SICAV-RAIF”, a closed-end fund targeting real estate investments with an opportunistic strategy.
Key quote: Alexis Pipilis, Invel’s Head of Acquisitions in the Hellenic region, says, “This acquisition is a testament to our expertise in identifying and acquiring luxury hospitality assets in outstanding locations in Southern Europe. It follows our acquisition of the Bellevue in Cortina d’Ampezzo and demonstrates our ability to source unique opportunities within these markets.”