European Hotel Transaction Bulletin - Week Ending 17 December 2021
Starwood REIT to acquire Iberostar Las Dalias, Tenerife, from Iberostar
American private investment firm Starwood Capital Group has entered an agreement to acquire the 420-room Iberostar Las Dalias, Costa Adeje in Tenerife in the Canary Islands, from Spanish tourism company and hotel group Iberostar Group, for a reported price of around €100 million (€238,000 per room), on a sale and leaseback basis. The four-star property, just recently re-opened after refurbishment, is to be acquired by Starwood’s unlisted REIT, Starwood Real Estate Income Trust, representing the REIT’s second European leasehold investment, and first in Spain.
KSL acquires majority stake in Dutch Group Eden Hotels, from the Dijkstra Family
US private equity firm KSL Capital Partners has acquired a majority stake in Eden Hotels from the Dijkstra family, who have built the group through three generations over the last 75 years, to today include 14 hotels with almost 2,000 rooms predominantly in Amsterdam as well as other Dutch cities. Terms of the investment have not been disclosed. The Dijkstra family will retain a “significant minority interest” in the group, and Leon Dijkstra will remain in his role as CEO. Eden Hotels’ key assets include the 400-room Eden Hotel Amsterdam located on the Amstel River near Rembrandtplein, as well as the Hard Rock Hotel Amsterdam American situated on Leidseplein. The new partnership will focus on growing the portfolio into Europe.
Hotel Investment Partners agrees JV for Mangia’s six-property portfolio in Italy
Owned through Blackstone-managed funds, Hotel Investment Partners (HIP) has entered an agreement for the purchase of a 1,900-room, six-hotel portfolio in Sardinia and Sicily in a joint venture with the Mangia family. The strategic agreement will see the Mangia family remain as a shareholder in the joint venture and continue to operate the hotels, which include three properties in Sardinia (Cala Blu, Marmorata and Agrustos), and three in Sicily (Brucoli, Costanza and Pollina). HIP and the Mangia family have agreed to invest €85 million into repositioning these six assets over the next few years. This transaction marks HIP’s first engagement in Italy and further extends its position as the largest owner of resort hotels in Southern Europe, which now includes 71 properties and some 21,000 rooms.
Ideal Versicherung acquires stake in Hotel Grand Tirolia, Kitzbühel, Austria
German insurer and pension provider Ideal Versicherung has reportedly acquired a 49% interest in Kitz Immobilieninvest GmbH, the owning entity of the Hotel Grand Tirolia, Kitzbühel, consisting of 42% from the Turnauer family entity Industrieliegenschaftenverwaltung AG (ILAG) and 7% from Hans Herzog’s ALCOR Beteiligungs GmbH. The transaction includes the 81-bedroom resort hotel and the championship golf course Eichenheim. Austrian entrepreneur Othmar Seidl will retain the majority stake with 51%. The hotel, which will reopen on the 20th of December 2021, will be operated by Hommage Luxury Hotels Collection, which is part of the Dorint Group. The hotel and golf course last transacted in 2018, when the seller was Russian billionaire Elena Baturina, with the intention of extending the 81-bedrooms to a total of 175 rooms with 330 beds. The works on the extension will reportedly resume in summer 2022 with completion anticipated in the next two years.
Swiss Life acquires the Axel Hotel, Barcelona from Juan Julià
Swiss Life Asset Managers has acquired the Axel Hotel in Barcelona from Spanish entrepreneur Juan Julià for a reported €30 million (€297,000 per room). The 101-room, four-star hotel is located in Eixample in the centre of Barcelona. Acquired through Swiss Life’s Sivan-Sif European Hotel fund, the property was transacted as a sale and leaseback arrangement with Axel Hotel and will reportedly deliver Swiss Life an annual return between 5%-5.5%.
Arora acquires the Luton Hoo Hotel, Golf & Spa in the UK from Elite Hotels
UK-based Arora Group has acquired the Luton Hoo, Golf & Spa from English owner and operator Elite Hotels Group, for an undisclosed sum. The five-star, 228-room property is located close to Luton Airport on over 1,000 acres of parkland with woods and lakes. The acquisition of the Luton Hoo hotel is part of Arora’s strategy to diversify its twelve-property portfolio, of which the majority of assets are concentrated around Heathrow and Gatwick airports in London.
Valary Hotels acquires Hilton Leicester, UK
UK hotel investor Valary Hotels has acquired the freehold Hilton Leicester for an undisclosed sum. The four-star, 179-room asset will benefit from investment across its facilities, which include a bar, two restaurants, eight meeting rooms, and including a LivingWell Health Club with indoor swimming pool, gym and sauna. Following the refurbishment, the hotel will be rebranding to the DoubleTree brand and operated by Countrywide Hotels under a franchise arrangement with Hilton Hotels & Resorts.
Group OTT acquires the Campanile Cannes hotel in France
Czech real estate investment and private equity firm Group OTT has acquired the Campanile Cannes hotel for an undisclosed sum. The 97-room hotel is located right next to Cannes’ Mandelieu airport, and is planned to undergo a full refurbishment and re-open with a cinema-themed concept. Group OTT’s hotel interests include 14 assets across Croatia, Czech Republic, Hungary, Poland and Russia, as well as the eight-property Central European hotel chain Mamaison of which OTT also owns three assets.
Malmö Cityfastigheter acquires the Best Western Hotel Royal, Malmö, Sweden, from Landia
Swedish property developer and property manager Malmö Cityfastigheter has acquired the Best Western Hotel Royal, Malmö from Swedish private real estate investment firm Landia, for an undisclosed sum. Located in Malmö’s city centre, the 50-bedroom, three-star hotel includes a restaurant with outdoor terrace, bar and sauna, and will continue to be operated by the current lessee.
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