Invesco drops €530M on 13 European hotels

Berlin, Germany (The second day of the International Hotel Investment Forum was all about milestones and partnerships, and there was plenty to go around.)

Invesco Real Estate has finalized its acquisition of a 13-hotel pan-European portfolio worth €530 million.

The portfolio of hotels across Germany and the Netherlands was purchased on behalf of the European Hotel Fund and two separate account mandates. One was a long-standing UK separate account mandate and the other was a new separate account mandate with a Danish and Dutch institutional investor. 

The majority of the hotels (85 percent) are in Germany, while the remaining 15 percent are in Amsterdam. Invesco purchased the hotels from funds managed by associates of Apollo Global Management. The real estate investment firm partnered with Event Hotel as part of a joint venture agreement to manage the hotels. Paul Hastings and PwC advised Invesco Real Estate while Eastdil Secured advised Apollo Global Management during the transaction.

“In 2017, we have already transacted or have in the pipeline around €900 million of transactions for the new fund and our growing portfolio of separate accounts,” Andy Rofe, MD at Invesco Real Estate, told the Real Estate Investment Times. “In our view, hotels are now seen as mainstream real estate investments.”

IPE Real Estate reported yesterday that Invesco Real Estate had sourced a €187.5-million transaction for Danish pension fund ATP to acquire a German hotel with a Dutch institutional investor. The 582-guestroom Hotel Holiday Inn Munich City Centre in the Haidhausen district will be managed by Invesco while it will be leased on a long-term contract to German-based operator Event Hotel Group. The hotel, which is near the historic city center and the S-bahn, will be renovated for a second time over the next three years. It was built in 1973 and was fully refurbished between 2004 and 2006.