Swiss Life Asset Managers is to buy two hotels in Mallorca and a hotel in Gerona from Spanish Reit Elaia Investment Spain.
The assets were reported to be worth over €45m, including an apartment complex in Menorca.
Three of the properties were leased to Pierre & Vacances and one is leased to HotelAtelier – all on long-term contracts.
Last year saw Swiss Life Asset Managers launched a hotel fund aimed at international institutional investors with a target volume of €1bn, focusing on three and four-star hotels located in “dynamic European cities” with a target consolidated leverage of 40%
The fund planned to build up a European portfolio looking to the main European hotel markets such as France, Germany, and the Netherlands as well as Southern Europe, which offered high potential for growth in average revpar.
“Asset allocation models show the value of exposure to the hotel sector in Europe, i.e. geographic and sectoral diversification, which are key elements in minimising risk. France remains the world’s leading tourist destination in terms of numbers of visitors, while Spain is the most popular in Europe in terms of leisure room nights, followed by Italy. Germany offers a broad range of cities where business travel is synonymous with stable revenue”, said Béatrice Guedj, head of research & Innovation Swiss Life REIM France.