HVS Europe Hotel Transactions Bulletin Week Ending 8 October 2021

A summary of European hotel transactions provided by HVS

Quinta acquires two-property portfolio in Cortina, Italy, from Bain

Italian fund manager Quinta Capital Sgr has acquired the 132-bedroom Grand Hotel Savoia and the 45-bedroom Radisson Residences Savoia Palace in Cortina d’Ampezzo, Italy, from Bain Capital for a reported €70 million(€395,000 per room). Bain Capital had acquired these assets through its subsidiary Aquileia Capital Service in 2019 from Fincos Srl with a buy-to-renovate strategy. Both properties, which were transacted as part of the Grand Investments real estate fund, were renovated for a combined €10 million. The newly launched, leisure- and hospitality-focused real estate fund, Grand Investments by Quinta Capital Sgr, is aiming at securing €200 million of capital with a target return of 5% when fully operational. Cortina, the host of the 2026 Winter Olympics along with Milan, is said to undergo extensive investments ahead of the world’s biggest tournament in winter sports, which will go hand in hand with the planned repositioning and re-branding of the acquired properties.

NREP acquires Quality Hotel River Station in Drammen, Norway, from Bane NOR

Swedish private equity firm NREP has completed the acquisition of the 247-bedroom Quality Hotel River Stationlocated in Drammen, Norway, from state-owned Norwegian railway infrastructure company Bane NOR SF for a reported NOK 485 million, the equivalent of €48 million (€194,000 per room). Construction of the limited-service, upper-midscale property was completed in November 2019. Located in the centre of Drammen at the main train station, the property is leased to one of the Nordic region’s leading hotel chains, Nordic Choice, with a remaining lease term of 13 years.

AJ Capital acquires the Slieve Donard Resort in Newcastle, Northern Ireland, from Hastings

US-based AJ Capital Partners has acquired the Slieve Donard Resort and Spa in Newcastle, Northern Ireland, from Hastings Hotels Group in a deal valued at £40 million (£221,000 per key). The four-star 181-bedroom property, located 30 minutes from Belfast, had been owned by the Hastings family since 1972. The property, which is adjacent to the internationally renowned Royal County Down Golf Club, will be operated under AJ Capital Partners’ Marine & Lawn Hotels and Resorts flag. Headquartered in Nashville, AJ Capital Partners is a real estate developer and hotel operator with a portfolio of more than 40 properties in locations across the US and the UK, including the Graduate Hotels chain. Hastings Hotel Group’s portfolio now encompasses six properties in Northern Ireland including the five-star Culloden estate and Spa.

PPHE acquires the FRANZ Ferdinand Mountain Resort Nassfeld, Austria, from “K1”

Amsterdam-based PPHE Hotel Group has acquired the FRANZ Ferdinand Mountain Resort Nassfeld, Austria, through its subsidiary Arena Hospitality Group, from “K1” Hotelerrichtungs GmbH, which is part of the Austrian real estate and investment company MID Holding GmbH, for a reported €15 million (€104,000 per room). The transaction includes the 144-room, four-star resort, a detached property with 21 rooms currently used for employee accommodation, as well as a site, adjacent to the hotel, earmarked for the future development of a swimming pool. The acquisition is part of the London Stock Exchange-listed PPHE Hotel Group’s strategy to expand their summer leisure business especially given its Croatian operations with Austria being one of the group’s largest customer markets.

Avelios and Crestline acquire The East London Hotel from Definition

UK-based Avelios Group and American institutional alternative investment firm Crestline Investors have acquired The East London Hotel in Bethnal Green, London, from property development company Definition Capital, in an off-market transaction. The 161-bedroom lifestyle property, which opened in 2018 after a £38 million investment, was Definition Capital’s first hotel development.

AGO Hotels acquires the ibis Swansea and ibis budget Newport in Wales

UK hybrid lease operator AGO Hotels has acquired the freehold interest in two Welsh properties, the ibis Swansea and the ibis budget Newport, for an undisclosed sum. Both the 99-room Swansea and the 104-room Newport property will continue to trade under their existing branding and will take the total hotels managed by AGO Hotels to twelve properties. Currently, all twelve properties are operated under the ibis or ibis budget flag. AGO Hotels continues to look for further opportunities to strengthen its UK portfolio through developments or conversions, offering a 25-year FRI lease structure with a base rent (quinquennially RPI upwards reviewed) and profit rent to prospective landlords.

Sadrudin acquires the ibis budget Hotel Bradford UK

UK-based businessman Ali Sadrudin has acquired the freehold of the 86-room ibis budget Hotel in Bradford, UK, from a consortium led by Singaporean investor Heeton Holdings Ltd in a JV with KSH Holdings Limited and Lian Beng Group Ltd for £1.95 million (£23,000 per room). The Consortium acquired the subject property in 2016, along with the ibis Hotel Gloucester. Heeton Holdings was the majority holder with an effective interest of 55 per cent in the consortium during the initial acquisition back in 2016. The property first opened in 2008 and is operating under a long-term franchise agreement with Accor Hotels. 

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