French real estate investment trust Covivio is buying a portfolio of European hotels for €600m, according to the seller Värde Partners.

Värde said it had entered into a definitive agreement to sell a portfolio of eight luxury hotels operating under The Dedica Anthology brand.

The full-service independent hotels have on aggregate over 1,100 rooms located in Rome, Nice, Budapest, Prague, Florence and Venice.

Värde began buying the debt of the company in 2016 through a series of transactions, ultimately acquiring 100% of the equity in 2017.

Värde said it had since taken a number of steps to transform the business, rebranding it in 2018.

“At the time we acquired the business it was in severe financial difficulty and facing an uncertain future,” said Francisco Milone, partner and head of European real estate at Värde Partners.

“Having appointed a best-in-class management team, together we have rebuilt trust with the company’s financial partners allowing us to refinance the business and execute an ambitious investment programme.

“Our real estate investment strategy targets opportunistic and value-add investments across commercial and residential markets, and we continue to explore opportunities in the Italian market.”

Stephen Alden, CEO of The Dedica Anthology, said: “The luxury hotel industry is changing rapidly in response to evolving customer preferences and increasing demand from travellers with a more millennial mindset.

“Our investment strategy, including a major renovation programme across the portfolio, is designed to capture the full potential of our collection of iconic hotels.”