Just weeks after Munich- and Vienna-based asset manager Wealthcore Investment Management acquired the 660-room Hilton Parkview hotel in Vienna, another globally branded hotel in the city has changed hands.
Luxembourg-listed VIY Greater Europe Hospitality Fund SICAV-SIF has closed the sale of its stake in the Radisson Blu Park Royal Palace. The stake went to the newly founded Switzerland-based Echo Fund for €66 million.
The property is leased by hotel operator Austria Trend Hotels and is located at the intersection of the 13th and 14th districts of Vienna, directly opposite the Schönbrunn Palace. The upscale mixed-use hotel has 233 guestrooms, a restaurant, a bar, a lobby, a conference hall, a spa and a fitness center.
VIYM, a private equity firm, assisted the seller in rebranding the former Austria Trend Hotel Park Royal Palace Vienna to the Radisson flag last year, and also helped close the transaction. The private equity firm also provided consultancy services for the process of renovating and selling the private residences, which was completed in November 2018. Gloriette’s Residences is a complex of apartments on the top floors of the hotel and includes 10 serviced apartments. The project was designed and implemented by the A2ZEN design firm.
"As an advisor to the owner throughout the project lifecycle, VIYM oversaw several initiatives, which included rebranding the hotel, renegotiating the terms of bank financing and completing the process of renovating and selling the private residences, ultimately helping to achieve the best possible deal for the owner," said VIYM co-founder Andrey Yakunin.
Vitus Eckert, founding partner of the Echo Fund, noted this was the fund's first acquisition, and said the fund was poised to acquire two more hotels. "The property offers very attractive conditions to our investors with considerable value increase in the future," added Michael Regner, founding partner of Echo. "As a first step, we have already implemented the start of a value-added extension of 14 rooms."
The fund is identifying and purchasing hotels with a purchase price in the €10 million-€70 million range and a target acquisition yield at or above 5 percent, according to the company.