AXA IM lifts hotel portfolio to €2b after €250m spend in 2015

AXA Investment Managers - Real Assets agreed nearly €250 mln of hotel acquisitions in 2015, boosting its global hotel portfolio in excess of €2 bn.

The latest deal involved the purchase of the ‘Jaz in the City’ hotel in Amsterdam from local developer G&S Vastgoed. That deal comes on top of the acquisition of three hotels purchased since January 2015 and comprising a total of 1,064 rooms. The deals are in line with the Paris-based investment manager's strategy to invest in upscale hotels primarily in key European cities, but also other international locations.

AXA IM - Real Assets now manages a hotels portfolio comprising 15,500 rooms across 80 hotels in eight countries with a combined value of over €2 bn. The hotels are located in strong business and leisure destinations within Belgium, France, Germany, the Netherlands, Spain, Switzerland, the UK as well as the US and are primarily managed by leading upscale hotel operators through all variations of management contracts, from traditional leases to franchise agreements.

The hotels portfolio makes up the bulk of AXA IM - Real Assets’ wider €2.7 bn alternatives platform.

AXA IM - Real Assets has built its hotels portfolio on behalf of an increasingly wide variety and number of both AXA insurance companies and third party clients who are attracted by the strong income potential of the asset class and the flexibility of investing into properties which require different levels of asset management in line with various risk profiles.

The Jaz Amsterdam opened in November 2015 and comprises 258 rooms. It is let on a long-term lease and operated by the Steigenberger Hotel AG’s recently launched new brand ‘Jaz in the City’. The Steinberger Hotel group is planning to roll out the brand in other cities around Europe.

Landmark deals
In 2015, AXA IM - Real Assets also acquired the 250 City Road hotel development in London on behalf of clients. This new hotel development is located in one of London’s distinctive areas close to the City of London and Shoreditch. This lifestyle hotel will be branded as 'nhow', part of the NH Hotel Group, one of the world’s leading hotel chains, and feature 190 rooms, a restaurant, a bar, gym and meeting rooms. AXA IM - Real Assets expects to deliver the four star hotel in 2018.

Another landmark acquisition in 2015 was the Hilton Hotel Pasadena in California, a 296 room property bought in joint venture with US-based hotel operator Aimbridge Hospitality. Located north of downtown Los Angeles, AXA IM - Real Assets plans to significantly redevelop the asset to provide best in class accommodation and conference facilities.

Hideki Kurata, head of Alternatives at AXA IM - Real Assets, said the latest acquisition in Amsterdam provides 'further strong evidence of the company's continued investment in upscale hotels and the ongoing expansion of the wider alternatives platform. 'We are actively targeting more opportunities in 2016 to secure quality assets in superior locations in markets which are supportive of further growth, primarily focused on Paris, London and cities in Germany, Italy and Spain.'

AXA Investment Managers - Real Assets brings together €64 bn in assets under management, including €50.4 bn in direct property & infrastructure and €11.7 bn in real asset finance as of end of June 2015.