Principal has acquired the Ona Hotel Terra in Barcelona for €40.50m from a local real estate developer.
The deal, which included a long-term lease with Ona Hotels, will see the property added to Principal’s Hotelfund II, which focuses on strategically located, high quality three to five-star hotels in major cities across Europe.
The 152-room hotel includes a restaurant, a bar, two meeting rooms as well as a rooftop terrace with swimming pool.
Jochen Schaefer-Suren, CEO, Principal’s hotel & leisure division, said: "The Ona Hotel Terra in Barcelona is an exciting investment for our Hotelfund II as it is a very attractive value-add opportunity in particular as the hotel development moratorium in Barcelona should constrain supply and provide a unique opportunity to benefit from future demand growth to all existing hotels including our new hotel in Barcelona.
“It is a perfect illustration of the type of value add hotel investments Principal is looking for after the successful sale of the hotel portfolio in Hotelfund I, led all but of one of our investors in Principal hotel fund II to give us this further vote of confidence with over €100m additional equity. This allows us to look for further hotel investment for Hotelfund II of over €400m in 2020 and beyond.”