European investment and asset management firm Avignon Capital has acquired the Hilton Hotel in The Hague for €70.25 mln from Hillgate Development and the Bon Groep.
The five star hotel opened in 2010 within the former Royal Dutch headquarters building and comprises 195 keys, plus an executive lounge, fitness area, restaurant, bars and meeting facilities. The property is operated via a management contract with Hilton Worldwide.
Bianca Tristao, investment manager at Avignon said: 'Avignon is pleased to have acquired arguably the best hotel in The Hague that is benefiting from strong trading performance driven by a consistent customer base from multiple industries and corporate demand.
'The Dutch hotel sector continues to show robust performance driven by increased corporate and tourism demand that provides sustained occupancy and ADR levels.'
Tristao added that 'the investment provides an excellent opportunity to capture attractive income returns through active management alongside Hilton, in order to increase revenues and maximise cost efficiencies'.
The deal marks Avignon's fourth hotel acquisition in the Netherlands, following the purchase of the Staybridge Suites hotel (part of The Intercontinental Group) in January 2019. Avignon opened its first office in the Netherlands in June via a strategic joint venture with VasteState, a Dutch property management company.
Jan Steinebach, head of hotels at CBRE the Netherlands, acting for the sellers, commented: 'We are very pleased to have found a very capable and experienced buyer for one of the most iconic and well-performing hotels in The Hague.
'Dutch cities like The Hague have received increased attention from national and international buyers over the past few years. Management contracts are less explored compared to leases in the hotel market in the Netherlands. However, this acquisition proves the great impact such a contract can have on the business and its performance.'
Avignon was advised by Clifford Chance and the sellers were advised by CBRE Hotels.
