Principal buys Lyon hotel

(Cours de loges)

Principal Real Estate Europe has acquired the Cour des Loges Hotel in Lyon for €24.5m on behalf of the Principal Hotel Real Estate Fund II.

The company has agreed a long-term lease with the Radisson Hotel Group, and in cooperation with Radisson, will renovate and reposition the hotel under the Radisson Collection brand.

Jochen Schaefer-Suren, CEO, Principal’s Hotel and Leisure division, said: “The Cour des Loges in Lyon is a unique hotel and a great acquisition for our Hotelfund II and we are thankful to our operating partner Radisson, one of the leading international hotel groups with a very strong covenant,  with whom we were able to sign a long-term lease agreement.

“The location, paired with the quality of the asset and the potential of the planned renovation and repositioning, are exactly the kind of value-add hotel investments Principal is looking for. As a result, we are still looking for further hotel investments for Hotelfund II in 2020 and beyond.”

The 60-room five-star hotel is located in the heart of the old town of Lyon, a UNESCO World Heritage listed district. It features two restaurants, a bar, a spa, several meeting rooms as well as a hidden garden.

The deal followed last month’s acquisition of the Ona Hotel Terra, in line with the fund’s strategy to acquire high quality three to five star hotels in strategic locations, in major cities across Europe with significant potential to increase value.

This hotel was marketed as part of a wider portfolio, before being selected by Principal as, it said, the asset most fitting for its strategy.