Azora has raised €815m for Azora European Hotel & Lodging (Azora EH&L), an amount which exceeds the pan-European hospitality fund’s original target by 36%.
Azora EH&L, which had an original €600m target, raised its €750m hard cap to €815m to allow the manager to accommodate new investors, comprising a large European pension fund, two large insurance companies; based in Europe and the US respectively, and two European family offices.
Madrid-based European private equity real estate manager Azora said the fund’s total commitments included additional co-investment capital.
The manager said with leverage, the fund has a total investment capacity of more than €1.8bn, of which €730m has already been committed to investments.
The fund’s investments so far include two hotels in the Algarve region in Portugal for €148m; acquisition of the Arenas Resort Giverola in Costa Brava in Spain, prior to a €40m repositioning project. Azora EH&L already has a portfolio of 4,600 keys in 18 hotels, the manager said.
Concha Osácar, founding partner at Azora, said: “This fund is a continuation of our successful strategy in the hotel sector, which began more than ten years ago. Throughout the pandemic we maintained our long-held conviction on the European leisure hotel and resorts market, which has already allowed us to build a significant-high-quality portfolio and to position our fund ahead of competitors, with a strong pipeline of future opportunities.”
Osácar said the pandemic has created and will continue to create additional opportunities over and above those originally envisaged for the fund.
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