AXA Investment Managers – Real Assets has acquired a portfolio of 11 hotels across Europe for €531m (£470m).
The portfolio will be secured through the acquisition of all assets held by Principal Hotel Immobilien Spezialfonds, managed by Principal Real Estate, a European real estate investment manager and part of Principal Financial Group.
The 2,339-bedroom portfolio, which includes the Hilton Vienna Danube Waterfront and MGallery Cologne, comprises a mix of business, trade fair and leisure-driven properties, with seven located in key cities in Germany and the four others in Vienna, Turin, Lisbon and the Hague. The hotels are operated by brands including Accor, Hilton and NH on long leases.
AXA IM – Real Assets manages a €3bn portfolio of hotels across the globe on behalf of its clients, which are primarily operated by leading hotel brands through a variety of arrangements from management contracts and franchise agreements to traditional leases.
John O’Driscoll, head of transactions Europe at AXA IM – Real Assets, said: “The hotels within this diversified portfolio are all leased on strong covenants and benefit from the solid local economics as well as tourist and business demand drivers that have underpinned their long-term performance.
“With various asset management initiatives already identified, including ongoing renovation works being undertaken at two of the hotels, we are confident that we can further enhance the long term income generated from the portfolio, on behalf of our clients.”
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