Europe Hotel Transactions Bulletin - Week Ending 05 April 2024

Hilton acquires majority stake in Sydell Group

International hotel group Hilton Hotels & Resorts has acquired a controlling majority stake in the Sydell Group, led by founder Andrew Zobler, which was established in 2005 and is the creator of the luxury hotel brand NoMad Hotels. Following this acquisition, NoMad will become Hilton’s first luxury lifestyle brand, and the group is already in advanced discussions over the opening of 10 new NoMad locations to add to the flagship NoMad London property in Covent Garden, with the aim of growing to 100 hotels over time. Hilton will assume development activities for the brand, whilst Sydell will focus on the design and management of the hotels. In addition to NoMad, the Sydell Group includes brands such as Line, Freehand, Saguaro and The Ned. This acquisition comes two weeks after Hilton announced its acquisition of the lifestyle brand Graduate Hotels for £165 million as previously reported in this newsletter.

Archer acquires Shelbourne Hotel in Dublin from Kennedy Wilson

APG Group and GIC Real Estate’s joint venture hotel investment vehicle Archer Hotel Capital has acquired the five-star, 265-room The Shelbourne, Autograph Collection in Dublin, Ireland, from global real estate investment company Kennedy Wilson, for a reported €260 million (€981,000 per room). The hotel is located in the city centre of Dublin on St Stephen’s Green near Grafton Street, one of the city’s principal shopping streets. The hotel features six F&B outlets, a wellness area and approximately 1,000 sqm of meeting space. Archer already owns the five-star, 192-room Conrad Dublin hotel some 500 metres from the Shelbourne, which it acquired in 2019 for €116 million (€604,000 per room), and its total portfolio now includes 14 hotels across western Europe totalling roughly 4,200 rooms.

Trinity, Oaktree and UBS acquire Park Hyatt Zurich leasehold from Hyatt

Hawaii-based real estate private equity firm Trinity Investments, US-based global investment manager Oaktree Capital Management and Switzerland’s UBS Asset Management’s Real Estate & Private Markets Multi-Managers have jointly acquired the long leasehold interest of the five-star, 138-room Park Hyatt Zurich from an affiliate of Hyatt Hotels Corporation. The Park Hyatt brand will remain on the hotel under a long-term management agreement with Hyatt. In addition to some 900 sqm of meeting and conference space, three F&B outlets and a fitness centre, the property includes 4,000 sqm of office space. Trinity and Oaktree have jointly invested $2.6 billion in seven different hotels since 2017. This acquisition comes after Trinity opened its first European office in London during Q4 2023 and marks its first investment in Europe.

King Street acquires Bauer Hotel in Venice from Signa

US-based global alternative asset manager King Street Capital Management has acquired the five-star, 210-room Bauer Hotel in Venice, Italy, from troubled Austrian real estate company Signa Group. The hotel is currently closed whilst undergoing renovations and is expected to reopen in 2025 under the Rosewood brand. The hotel is located in the San Marco district of Venice, with views on the renowned Salute Basilica and a short walk from Doge’s Palace and Saint Mark’s Basilica. King Street's assets under management total roughly $25 billion as of Q1 2024. The sale comes following the Signa Group’s announcement in November 2023 that it had filed for insolvency as a consequence of increased construction, energy and debt costs. At its heights, it was one of Austria’s largest private real estate companies, and is now aiming to gradually sell assets as part of its restructuring.

Aprirose acquires three hotel ground rents in the UK from Lloyds PF

UK-focused real estate investment firm Aprirose has acquired the ground rent of three four-star hotels in the United Kingdom from Lloyds Pension Fund. The three assets are the 117-room Crewe Hall Hotel and Spa near Manchester, the 141-room Slaley Hall Hotel, Spa and Golf Resort near Newcastle and the 152-room Oulton Hall Hotel, Spa & Golf Resort in Leeds. The three hotels are part of the QHotels portfolio and are owned by a joint venture between Aprirose and Chinese private equity firm Cindat Capital Management. Aprirose acquired the 26-hotel, 3,000-room QHotels portfolio from Bain Capital Credit and Canyon Partners in 2017 for £525 million (£175,000 per room).

La Llave de Oro acquires Hotel Ciutat de Barcelona from Ciutat

Catalan real estate developer La Llave de Oro, owned by the Marsa family and led by CEO Ferran Marsa, has acquired the three-star, 79-room Hotel Ciutat de Barcelona in Spain for a reported €29 million (€367,000 per room), from Barcelona-based Ciutat Hotels Group. The asset includes parking facilities and a swimming pool and is located in the Gothic Quarter of the Catalan capital, close to the Ciutadella Parc and zoo. La Llave de Oro is expected to take over the management of the property and will be maintaining operations during the summer season, ahead of a potential refurbishment plan to reposition the hotel to a higher chain scale. This marks the group's second acquisition, following its purchase of the three-star Andante hotel in Barcelona over a decade ago.

Azora Capital acquires two hotels in Brussels

Spanish real estate and infrastructure investment company Azora Capital has acquired two adjoining hotels in Brussels - the three-star, 66-room Le Berger Hotel and 34-room Jardin Secret Hotel, for €18 million (€180,000 per room), from a consortium of investors. The hotels are centrally located near the Palais de Bruxelles and the Palais de Justice and are expected to be rebranded under the boutique hostel brand Latroupe and managed by Azora Capital. Azora’s hospitality and leisure portfolio comprises approximately €4.2 billion in assets under management in the USA and nine key western and southern European markets, totalling over 26,600 rooms across more than 100 assets.

Hotusa acquires Hotel Alma Pamplona in Spain from Alma Hoteles

Spanish hotelier Grupo Hotusa has acquired the four-star, 59-room Hotel Alma Pamplona in Spain from local businessman Joaquin Ausejo’s hotel chain Alma Hoteles. The hotel, located in the Navarre region of northern Spain, is roughly 50 kilometres from the French border and 150 kilometres to the east of Bilbao and includes a wellness & spa area, 1,800 sqm of gardens, 700 sqm of conference spaces and a Michelin-starred restaurant. Following this transaction, the Alma Hoteles chain will have only one remaining asset, the five-star, 71-room Hotel Alma Barcelona, which is located on the renowned Passeig de Gracia shopping and business avenue. The Pamplona hotel is expected to rapidly resume trading under the Eurostars brand, the Hotusa Group’s largest by footprint.

New HVS Publications

2023 European Hotel Transactions (Read here)

Recent HVS Publications

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HVS 2023 European Hotel Valuation Index (Read here)
PAM – The Most Useful Benchmark for Hotel Investment (Read here)
Hotel Franchising in Europe – The Push Continues for New Ways to Expand (Read here)