PensionDanmark has added a second hotel to its real estate portfolio and expects to continue investing in the hotel sector.

The DKK183bn labour-market pension fund bought the 88-room Comwell Hotel in the Zealand town of Holte for DKK109.5m (€14.7m).

The hotel was sold by operator Comwell, which will remain as tenant.

Torben Möger Pedersen, chief executive at PensionDanmark, said: “We expect the investment to give our members a good and stable return over a number of years.”

He said the hotel, on the northern outskirts of Copenhagen, was modern and an attractive location for tourists and conference users.

In January, the pension fund invested DKK267m in the Comwell Hotel in the Danish town of Roskilde.

Marius Møller, director of PensionDanmark’s property investment division, told IPE the pension fund expected to add more hotels to its portfolio.

Asked why it was targeting the hotel sector within its overall property strategy, he said: “Because real estate investments within parts of the hotel industry are characterised by growth; long, irrevocable leases; fixed leasing regulated by indexation; strong tenant creditworthiness; and a positive past performance.”

Møller said any future hotel investments would have to meet these criteria.

PensionDanmark is not currently considering any hotel investments outside Denmark.

“However,” Møller said, “if we see interesting projects outside the Danish market, we may look into that in the future.”

The hotel in Holte currently has 88 rooms and is being expanded further to meet demand from both conference guests and individual hotel guests, the pension fund said.

The hotel has 6,640sqm of hotel space with 88 rooms and 573sqm of office space but is being expanded to 104 rooms from August this year.

PensionDanmark said its property portfolio was expected to grow to more than DKK20bn this year, with assets divided among the commercial, residential, retail and public/private partnership sectors.