Home » HVS Europe Hotel Transactions Bulletin – Week Ending 10 March 2023

HVS Europe Hotel Transactions Bulletin – Week Ending 10 March 2023

Sistema acquires ten Russian hotels from Wenaasgruppen

Russian investment firm Sistema Group, through its wholly-owned subsidiary Cosmos Hotel Group, has completed the 100% acquisition of a number of Russian companies that owned ten hotels with 4,078 rooms across four Russian cities, for €200 million (€49,000 per room). The seller was family-owned Norwegian firm Wenaasgruppen. The deal includes six hotels in St Petersburg (1,184-room Park Inn by Radisson Pribaltiyskaya, 842-room Park Inn by Radisson Pulkovskaya, 269-room Park Inn by Radisson Nevsky, 164-room Radisson Blu Royal Hotel, 200-room Park Inn by Radisson Pulkovo, 348-room Olympia Garden Hotel), two hotels in Moscow (258-room Park Inn by Radisson Sheremetyevo, 391-room Radisson Blu Sheremetyevo Airport), as well as the 262-room Park Inn by Radisson Murmansk in north-west Russia and the 160-room Park Inn by Radisson Yekaterinburg located to the east of the Ural Mountains. These acquisitions double the number of rooms in Cosmos’ hotel portfolio.

Perial AM has acquired the five-star 263-room Dolce by Wyndham Sitges hotel from Angelo Gordon for a reported €75 million (€285,000 per room). The resort hotel, situated in the Catalonian coastal town of Sitges some 30 kms south-west of Barcelona, will be operated by Hotusa under a 30-year agreement and will be renamed to Eurostars Sitges. The subject property includes 41 suites, six restaurants, a wellness centre, a conference centre with 26 rooms across 2,000 sqm and an 18-hole golf course. Angelo Gordon acquired the property in July 2017 for around €40 million and invested a further €15 million into renovations.

Boutique hotel group Firmdale Hotels has acquired the 58-room Covent Garden Hotel in London, which it has operated since 1996, for just under £55 million (£948,000 per room) from CBRE Investment Management. Founded by Tim and Kit Kemp, Firmdale’s portfolio includes ten luxury hotels and eight bars and restaurants across London and New York. Its other London hotels are the Ham Yard Hotel, Haymarket Hotel, Charlotte Street Hotel, The Soho Hotel, Number Sixteen, Dorset Square Hotel and the Knightsbridge Hotel.

Andbank’s Atalaya fund acquires the Niagara Hotel in Mallorca, Spain

Spanish private banking firm Andbank España’s Atalaya hotel fund has acquired the four-star 142-room Niagara Hotel in Mallorca from a private family who managed and owned the hotel for over 40 years. Located on Playa de Palma beach close to the island’s capital city of Palma, the hotel is to be managed by Mallorcan operator THB Hotels, which was founded in 1987 and today has 18 hotels with around 3,500 rooms. The sale price was not disclosed, however half the sum was raised with funds from Atalaya and the other half with a loan from BBVA Bank. The fund, which is managed by Navis Capital, now has a total of three hotels in Spain, totalling 700 rooms.

Macquarie acquires ground lease of the Clayton Hotel in Cambridge, UK, from CBRE IM

Macquarie Asset Management has acquired the ground lease of the 155-room Clayton Hotel in Cambridge from CBRE Investment Management for £20 million, representing a net initial yield of 2.6%. CBRE IM is exiting the ground lease structure that it created in a sale-and-leaseback deal with Ability Group in 2019. The hotel is leased to Dalata and operated under its Clayton brand. Ability Group holds the long leasehold interest. The hotel has a restaurant and bar and extensive conference facilities.

Honotel acquires the Aqua Hôtel Brussels and the Argus Hôtel Brussels in Belgium

Hotel owner and operator Groupe Honotel, through its portfolio management company Hotel Investissement Capital’s Cap Hospitality IV fund, has acquired two three-star hotels in Brussels, Belgium, the 97-room Aqua Hôtel Brussels and the 43-room Argus Hôtel Brussels. Both hotels are located in the Louise district. The new owner is looking to renovate the properties and improve their energy efficiency. With this latest acquisition, the group’s hotels under management reaches 45 properties.

Anil Khanna, the owner of independent hotel group KE Hotels, has acquired the 148-room Hotel Indigo Newcastle in the north of England for an undisclosed sum, from a consortium of private investors. The former office building was converted to a hotel and opened in June 2012 with a bar, restaurant and fitness centre. The freehold hotel is operated under a franchise agreement with IHG Hotels and Resorts under the Indigo brand. This acquisition marks the third UK property for KE Hotels, with the other two being the Marriott Moxy Hotel Manchester City and Linton Lodge hotel in Oxford.

Local Dutch owner-operator Highland Group has acquired the budget 52-room Hotel Atlantis in Amsterdam, the Netherlands, for around €9.5 million (€183,000 per room) from restaurant entrepreneurs the Shao family. The family acquired the property in 2010 for €2.95 million shortly after it was transformed into a two-building hotel from an 1896 residential apartment building by developer Selim Vastgoed. The Highland Group portfolio now includes six hotels and one hostel, for a total of 180 rooms.

LondonMetric sells the Premier Inn Ringwood in the UK UK-based REIT London

Metric Property Plc has sold the 84-room Premier Inn Ringwood in the south of England for £8.65 million (£103,000 per room) as part of a seven-property £33.9 million sale of long income assets, reflecting a blended net initial yield of 4.5%. The hotel, located between Southampton and Bournemouth, was the highest-valued asset in the sale. LondonMetric funded the development of the hotel in 2019 at a cost of £4.2 million.

Travelodge has acquired a 20-year lease to operate the 78-room NH Villa de Coslada hotel (to be renamed to Travelodge Madrid Coslada Aeropuerto) in Madrid, Spain, from Spanish real estate firm Grupo Veintidos. Including the planned refurbishment programme, Travelodge will invest a total of €1 million (€12,800 per room) in the acquisition. The refurbishment of the hotel to Travelodge’s budget-luxe premium concept will begin in May 2023, with the opening expected for the summer of this year. The property, located some 7 kms south of Madrid airport, is also near the Civitas Metropolitano Stadium and IFEMA Madrid convention centre. Travelodge currently operates two hotels in Madrid, two in Barcelona and one in Valencia, and is keen to significantly expand its operations in Spain.

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