CapMan Hotels II (CMH II) has acquired 28 hotels in the Nordics in what has been described as the largest transaction of its kind in the region.
The purchase of Midstar Fastigheter makes the open-ended CMH II fund a leading player in the Nordic hotel sector.
Midstar Fastigheter has focused exclusively on hotel investments in Sweden, Denmark and Norway.
The assets will now be managed by Nordic fund manager CapMan Real Estate.
The hotels have a total of 4,709 rooms and there are plans to increase the number to 4,887 rooms by 2027 through “targeted value-enhancing initiatives”.
CapMan said the portfolio complements CMH II’s existing portfolio with properties in major metropolitan areas, such as Copenhagen, Stockholm, Gothenburg and Oslo, in addition to regional hotels in prime locations.
Thomas Laakso, partner at CapMan Real Estate and fund director of CMH II, said: “The Nordic hotel market is well positioned for continued growth and we look forward to developing the portfolio further, in line with the fund’s long-term strategy. In addition to the geographic diversification across four stable countries, the portfolio also benefits from a diverse operator base additionally balancing risk, which is ideal for the fund’s income profile.”
CapMan said it would seek to add value through active management, refurbishment and repositioning, including the reduction of operating expenses and emissions and creating positive social impact.
Pia Kåll, CEO of CapMan, said: “We are thrilled to complete this acquisition after receiving the regulatory approval from the Swedish Competition Authority. This milestone transaction not only strengthens our position in the Nordic hotel investment market but also attracts new investors, contributing to the growth of CapMan Group’s assets under management by €400m, towards our strategic target of €10bn during the ongoing strategy period.”
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