AXA Investment Managers – Real Assets (AXA IM – Real Assets) has entered into an agreement to acquire, on behalf of clients, a portfolio of 11 well established hotels across Europe, including the Hilton Vienna Danube Waterfront and MGallery Cologne, for a net price of €531 million.
The portfolio will be secured through the acquisition of all assets held by the Principal Hotel Immobilien Spezialfonds, managed by Principal Real Estate, a European real estate investment manager and part of the Principal Financial Group.
The 2,339-room portfolio comprises a good mix of business, trade fair and leisure driven properties, with seven located in key cities in Germany and the four other assets located in the leading European cities of Vienna, Turin, Lisbon and The Hague. The hotels are operated by internationally renowned brands including Accor, Hilton and NH on long leases.
“The hotels within this diversified portfolio are all leased on strong covenants and benefit from the solid local economics as well as tourist and business demand drivers that have underpinned their long-term performance. With various asset management initiatives already identified, including on-going renovation works being undertaken at two of the hotels, we are confident that we can further enhance the long term income generated from the portfolio, on behalf of our clients,” said John O’Driscoll, Head of Transactions Europe, at AXA IM – Real Assets.