Investors Henderson Park and Hines have jointly acquired a portfolio of five hotels on the Greek island of Crete.
Financial details were not disclosed. Piraeus Bank provided finance for the transaction.
The purchase, comprising two separate transactions, marks the joint venture’s second foray into the Greek hotel market, following the acquisition in 2017 of the former Ledra hotel in Athens, which was subsequently transformed into the five-star Grand Hyatt hotel.
The 1,094-room, c. 67,000 m2 portfolio comprises five seafront hotels in key resort locations across the island. These include Hermes and Coral, two adjacent hotels with 218 and 170 rooms respectively, centrally located in the coastal city of Agios Nikolaos.
The other properties include Santa Marina and Apollonia, with 208 and 336 rooms respectively, on the seafront in Heraklion, and a 162-room resort and spa hotel located in Sitia, a coastal town on the west of the island.
Nick Weber, founding partner of Henderson Park, said: 'While the leisure industry has no doubt been temporarily impacted by the Covid-19 crisis, we are firm believers that it will bounce back. With this transaction we have been able to provide a solution to a distressed situation and gain control of a number of high quality, high-potential assets in a globally leading tourist destination at an attractive entry basis.'
According to the joint venture, all of the hotels have strong track records of occupancy and offer uplift potential. Y&T Daskalantonakis Knossian Group, a specialist asset manager of upscale and luxury hotels, has also been instructed by the joint venture as local operating partner, responsible for managing the hotels.
Weber added: 'Government plans to begin reopening Greece are reaffirming our overall investment thesis and we have strong conviction in the significant repositioning opportunities that have been identified to enhance longer term value.'
Paul Gomopoulos, senior manging director and country head for Greece at Hines said: 'While the headwinds from the global pandemic will clearly have a material impact on the leisure and hospitality sectors, we have confidence in the mid to long-term prospects and as such are committed to pursuing further opportunities in this market.'
Finance for the transaction was provided by Piraeus Bank. Hines and Henderson Park were advised by Lambadarios Law Firm.
