Invesco Real Estate is selling a major European hotel portfolio two years ahead of its fund’s expiry.

The investment manager said the portfolio of seven assets is being sold for €415m to listed Swedish hotel company Pandox.

Invesco’s second pan-European hotel fund, which was launched in 2011, will be closed upon the completion of the sale next month. It had originally planned to wind up the fund in 2018.

Marc Socker, senior director of hotel fund management at Invesco Real Estate, told IPE Real Estate: “There was an opportunity to sell without marketing and the buyer is a credible, solid investor.”

Socker said the portfolio, which includes hotels operated by NH and Radisson Blu in Austria, Germany and the Netherlands, was sold within three months.

Investors in the fund, largely European institutions, have been provided with a net internal rate of return of above 12%.

Socker said the sale of the portfolio was in no way a reaction to the changing nature of the hotel sector.

As delegates heard at Invesco Real Estate’s ninth annual conference in Amsterdam on Friday, the sector is becoming more multi-channel, with short, medium and long-term lengths of stay available to travellers across a range of new business models.

Marc Jongerius, co-founder of Zoku, which provides 25sqm rental work-rest-play accommodation, said its business model was based on changing demands from travellers. The firm, he said, offers a scaled pricing model depending on length of stay.

Socker said Invesco Real Estate remains committed to hotels – but would not comment on the possibility of a third follow-on fund being launched. The firm’s first dedicated hotel fund was launched in 2006.

“There’s investor appetite for hotels for there secure income and long leases,” he said. “Interest is greater than ever.”

There is an “opportunity to grow with brands”, he said. “It’s about adapting to change.”

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