Europa Capital and WX Management Services have completed the acquisition of the Radisson Blu Centrum Hotel in central Warsaw for an undisclosed price.
The seller was Shaw Investments, which owned the hotel through its PHD Polska (formerly BRC Holding) vehicle. The acquisition took place through the purchase of PHD’s shares. The 311-guestroom hotel is located in Warsaw’s central business district and opened in 2003.
WXMS advised Europa Capital in the process, is a co-investor in the transaction and will provide ongoing asset management services for the hotel.
“The Warsaw hotel market is currently experiencing a period of demand supply imbalance,“ Robert Martin, the co-founding principal and head of Central Europe at Europa, said. “This is a fantastically well-located asset in central Warsaw with a very strong performance track record. We have experience in this sector with our successful refurbishment of the Sobieski Hotel and are teaming up with the same partner in WX Management Services to undertake a comprehensive refurbishment and to drive performance. We will be working in close co-operation with Radisson, who will continue to operate the hotel.”
“This investment not only offers Europa stable, income-led returns, but also the opportunity to significantly improve the performance of the investment through refurbishment and operational efficiency in what is generally a growing hotel environment,“ James Farmer, the director of acquisitions for Central Europe at Europa Capital, said. “The asset has been secured at an attractive price when compared to current pricing levels in other sectors in this market. Furthermore, this acquisition builds on Europa’s excellent track record of securing truly off-market investments that are under the radar of our competitors.”