Wiesbaden, Germany-based global real estate asset and investment management firm Commerz Real Capital Management Co. has acquired a hotel complex in Lisbon for its institutional hotel fund from Portuguese project developer Turismadeira S.A.. The purchase price was not disclosed.
Located on Rua Engenheiro Vieira da Silva in the central business district, the development includes the DoubleTree by Hilton Lisbon, Fontana Park, built in 1910 and adapted into a hotel in 2008. An extension to the historic building is currently under construction.
The existing seven-story hotel has 146 rooms and 62 parking spaces, as well as conference areas, two restaurants, a bar and a fitness area. Following its anticipated completion in 2020, the extension will have 80 suites (averaging about 40 square meters) and 40 parking spaces. The extension also will have a new conference hall and ballroom. It will be connected to the existing building and a new main restaurant.
Commerz Real has concluded a triple-net leasing agreement for a period of 20 years with Fontana Hotels S.A., which is operating the hotel with Hilton as the manager. The lessee is responsible for the maintenance of the entire property.
According to figures from PwC, capacity utilization of hotels in Lisbon has consistently increased in recent years and is set to amount to just over 80 percent in 2019. Revenue per available room (RevPAR) in 2019 is expected to be around €101, which would be nearly 40 percent more than 2016's numbers (€73).
“Lisbon has established itself as one of the leading tourism destinations in Europe,” said Dirk Schuldes, global head of hospitality at Commerz Real. “At the same time, the hotel market profits from an increasing amount of business travelers as a result of numerous international trade fairs in the capital.”
The transaction is the fourth for the fund. In the medium to long term the fund, which is structured as an open-ended special AIF (alternative investment fund), is looking to develop a diversified portfolio of business hotels in the three-to four-star category in international cities with a volume of approx. €2 billion for professional and semi-professional investors.