A European real estate fund managed by Orion Capital Managers is acquiring a 72% stake in a five-star 517-key hotel in Portugal’s capital.

The Orion European Real Estate Fund VI fund has agreed to acquire the majority stake in Corinthia Hotel Lisbon from owner International Hotel Investments (IHI).

IHI will retain a 28% interest in the joint venture following completion, and its subsidiary Corinthia Hotels Limited will continue to manage and operate the asset.

Financial details were undisclosed.

The Corinthia Hotel Lisbon, the city’s largest five-star hotel, has recently completed a comprehensive refurbishment.

Orion said the acquisition of the Corinthia Hotel Lisbon represents the debut investment for the Orion European real estate fund, which is currently targeting a final close of €1.5bn.

Rami Badr, partner, Orion, said: “We are very pleased to build on our longstanding relationship with Corinthia by acquiring a majority stake in the landmark Corinthia Lisbon.

“This structured transaction is on a high quality asset with proven financial performance and significant upside potential, thanks to the strength of the Lisbon hospitality market and the just-completed refurbishment. It is a great example of what the opportunities Fund VI is pursuing in today’s market.”

Simon Naudi, CEO, IHI, said: “We are pleased to welcome Orion as a strategic partner and majority investor in our Lisbon hotel, in which we will continue to hold an interest and operate as a Corinthia Hotel.

“As owners, developers and operators of the Corinthia Hotels portfolio, we welcome this step to free up capital in support of the achievement of our goals on shareholder returns and brand growth worldwide.”

Aref Lahham, founding Partner, Orion, said: “Our pan-European, sector-agnostic mandate allows us to identify opportunities across a wide range of sectors where we can create meaningful impact and capture alpha. Over the past 27 years we’ve built substantial expertise across multiple asset classes, enabling us to source and execute good value investments taking advantage of different sector cycles.

“This transaction reflects that philosophy, leveraging our experience in luxury hospitality to deliver a compelling first investment for Fund VI.”

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