Invesco Real Estate has bought a Polish hotel for a UK pension fund.

The Sheraton Grand Hotel in central Krakow was bought for €70m for the separate-account client.

The 232-room hotel was recently refurbished, said Marc Socker, Invesco’s managing director for hotel fund management.

He said the hotel has been one of the strongest performing hotels in central and eastern Europe, with a prime location in Krakow’s old town.

The refurbishment has resulted “in the asset’s rebranding into the upper-upscale segment of the market”, he said.

The investment manager last year sold a major European hotel portfolio two years ahead of its fund’s expiry.

The portfolio of seven assets was sold for €415m to listed Swedish hotel company Pandox.

Invesco’s second pan-European hotel fund, which was launched in 2011, was then closed. It had originally planned to wind up the fund in 2018.