Europe Hotel Transactions Bulletin - Week Ending 22 March 2024

CPIPG sells 50% stake in eight Czech hotels to Best Hotel Properties

Czech real estate investment firm CPI Property Group (CPIPG) has formed a joint venture agreement with Slovakian company Best Hotel Properties, selling a 50% stake in its subsidiary that owns a portfolio of eight hotels in the Czech Republic, for roughly €173 million, valuing the entity at €347 million. The transaction also included the operating company CPI Hotels A.S., which is expected to remain the hotels’ operator. The assets within the portfolio include the Clarion Congress Hotel Prague, the Mamaison Residence Downtown Prague and the Comfort Hotel Prague City East. CPIPG is expected to use the proceeds from this transaction to service debt. CPIPG’s portfolio primarily consists of Czech, German and Polish real estate assets which totalled €20.3 billion as of Q3 2023 and of which hotels represented approximately 5% at the time.

BG Hotels sells BG Portinatx Beach Club Hotel in Ibiza to Spanish hotel family

Balearic hotel chain BG Hotels has sold the four-star, 243-room BG Portinatx Beach Club Hotel on the island of Ibiza, Spain, to an undisclosed Spanish family, who reportedly own international hotel businesses. The transaction closed for a reported €60 million (€247,000 per room). The all-inclusive hotel is located on the northern coast of the Balearic Island roughly 35 kilometres from its international airport. The hotel closed in Q4 2023 to commence renovations, which aimed to improve the asset to five stars, although were not commenced under BG’s ownership, with the new owners expected to carry them out and reposition the asset. Following the sale, BG’s portfolio spans six hotels across the Balearics, in Ibiza and Mallorca.

ASG sells Hampton by Hilton in Barcelona to UK family office

Berlin-based private equity firm ActivumSG (ASG) has sold the three-star, 241-room Hampton by Hilton Barcelona Fira Gran Via in Barcelona, Spain, to an undisclosed British family office for €50 million (€207,000 per room). The hotel is located in the southwest of Barcelona, in close proximity to the Fira convention centre, which attracted approximately 200,000 visitors in 2023. The hotel opened in 2021 and reportedly cost ASG some €40 million to develop. Upon opening, ASG signed a franchise agreement with Hilton and a long-term operating lease with Dutch white label operator Borealis Hotel Group. ASG has raised four funds to date that are dedicated to real estate opportunities in Germany and Spain. The four total nearly €880 million and are nearing full allocation.

Millennium REIT sells Hotel Eurostars Lucentum in Spain

Spanish REIT Millenium Hospitality Real Estate has sold the four-star, 169-room Hotel Eurostars Lucentum in Alicante, Spain, for €29.9 million (€177,000 per room), to an undisclosed buyer. The asset, which is located in the city centre of Alicante, was acquired by Millenium in 2018 and was originally built as the headquarters of the Bank of Alicante, later absorbed by BBVA bank. The hotel, which includes a gym and sauna, five meeting rooms and a breakfast buffet, is operated by Spain’s Hotusa Group under its Eurostars brand via a fixed-rent agreement until 2025 and a fixed and variable rent agreement from there onwards. According to Millenium, this transaction has generated capital gains in excess of €7 million, exceeding the REIT’s target.

Recent HVS Publications

HVS 2024 European Hotel Valuation Index (Read here)
Easier Visas Lead to Tourism Growth and Increased GDP (Read here)
2022 European Hotel Transactions (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)