Invesco confirms acquisition of Novotel in The Hague

Invesco European Hotel Real Estate Fund has confirmed it has acquired the Novotel in the World Forum in The Hague from Dutch developer TCN.

The financial details were not disclosed when the sale was initially announced by TCN in July.

But in a new statement on Tuesday, Invesco said the hotel, with associated facilities, was purchased from TCN, with 100% equity. 'Based on a subsequent lease restructuring with the existing tenant, the Accor Group, the hotel was acquired at a gross yield of over 8.5% and valued at approximately EUR 25 mln. This lease renegotiation and extension allowed for an uplift in value through this creative structuring,' Invesco said.

The 216-room hotel is located within the World Forum Convention Centre in The Hague, surrounded by various international institutions such as The International Criminal Tribunal for the former Yugoslavia (ICTY), the UN Organisation for Prohibition of Chemical Weapons (OPCW), the new Europol headquarters and a multitude of embassies and other public agencies.

Invesco said the purchase of the hotel was in line with the hotel fund's investment strategy of expanding its diversified pan-European portfolio of leased mid-market hotels. This latest acquisition brings the fund’s total investments or commitments close to EUR 500 mln or about 70% of total capital available for investment.

TCN has retained ownership of the other parts of the World Forum. Nadorp Bedrijfsmakelaars acted on behalf of the vendor.