Archer buys Madrid Edition

(Madrid Edition)

KKH Property Investors has agreed to sell The Madrid Edition to Archer Hotel Capital for €220m.

The 200-room hotel is currently being developed by KKH Property Investors and is due to open in May 2021.

The hotel will be the second Edition hotel in Spain, joining the 100-room Barcelona Edition which was also developed by KKH.

“We are delighted to have found an agreement with KKH for the acquisition of our second property in Madrid. KKH has put together an attractive scheme and we are confident the Madrid Edition will be one of the most exciting hotel openings across all of Europe in 2021,”said Dominic Seyrling, director, investments, Archer Hotel Capital.

Archer Hotel Capital was launched last year as a European hotel investment vehicle by APG and GIC Real Estate.

The Archer Hotel Capital portfolio comprised 11 hotels located in major cities across Western Europe with a gross asset value of around €2.1bn. All the hotels were formerly part of the Host Hotels & Resorts European joint venture.

The portfolio was formed of: Le Méridien Piccadilly, Hotel Arts Barcelona, Westin Palace Madrid, Brussels Marriott Hotel Grand Place, Paris Marriott Rive Gauche, Renaissance Paris La Defense, Renaissance Amsterdam, Hilton Amsterdam Airport, Sheraton Stockholm, Sheraton Berlin Grand. and Renaissance Paris Vendôme, giving it over 4,000 rooms.

Lee Kok Sun, CIO, GIC Real Estate, said: “This consolidation reflects our confidence of longer-term European business and tourism prospects, and enables us to scale up exposure to a portfolio we know well. We will continue to look out for opportunities to acquire high quality assets that deliver commensurate risk-adjusted returns over the long term. We look forward to working with the management team and playing an active role in the strategic direction of the vehicle.”

Robert-Jan Foortse, head of European real estate, APG said “We believe that European hotel real estate provides a compelling investment case for us, and for our pension fund client ABP, and we are pleased to have secured the opportunity to increase our exposure to a portfolio of institutional quality assets in prime locations across the continent. We believe that Archer Hotel Capital will be uniquely positioned in a European context, with its long-term horizon and high-quality capital sources allowing it to unlock complex investment and value enhancement opportunities.”