Invesco Real Estate has bought 13 hotels in Germany and the Netherlands for €530m on behalf of three mandates.
The portfolio was acquired for the newly-established open-ended European Hotel Fund and two separate account mandates, the company said.
In a separate announcement, Danish pension fund ATP said Invesco had sourced its acquisition of a Munich hotel – in joint venture with a Dutch investor – for €187.5m.
Andy Rofe, managing director at Invesco, said: “In our view, hotels are now seen as mainstream real estate investments and we are delighted that the appetite from our growing client base into the sector supports this view.”
He said Invesco Real Estate’s investment in hotels was growing and that the unit had concluded two closed-ended hotel funds and transacted around €2bn in the sector on behalf of the pooled funds and separate accounts.
“In 2017 we have already transacted or have in the pipeline around €900m of transactions for the new fund and our growing portfolio of separate accounts,” Rofe said.
In July, Invesco Real Estate said it had raised almost €180m from 10 institutional investors for its third pan-European hotel fund.