Avignon Capital has expanded its footprint in the Netherlands and in the hotel sector with a €70m investment.
The European asset manager said it invested the capital to buy the 5-star Hilton Hotel in The Hague from Hillgate Development and Bon Groep.
Opened in 2010, the hotel consists of 195 large guest rooms, an executive lounge, fitness area, restaurant, cocktail bar, Starbucks Café and meeting facilities.
The hotel is operated on a management contract to Hilton Worldwide.
Avignon, which made its debut hotel acquisition in March 2017, said the deal marks its fourth hotel acquisition in the Netherlands.
Bianca Tristao, investment manager at Avignon Capital said: “Avignon is pleased to have acquired arguably the best hotel in The Hague that is benefiting from strong trading performance driven by a consistent customer base from multiple industries and corporate demand.
“The hotel offers some of the biggest guest rooms in The Hague and is well-positioned to benefit from increased tourism to the city.”
Tristao said the investment provides an opportunity to capture attractive income returns through active management alongside Hilton, in order to increase revenues and maximise cost efficiencies.
Jan Steinebach, head of hotels at CBRE the Netherlands, acting for the sellers, said: “Dutch cities like The Hague have received increased attention from national and international buyers over the past few years.
“Management contracts are less explored compared to leases in the hotel market in the Netherlands. However, this acquisition proves the great impact such a contract can have on the business and its performance.”