Invesco Real Estate has added three hotels to its European Hotel programme so far this year, and suggests the market is turning in its favour.
With a ‘post-covid recovery’ in the sector fuelling a strong return profile for investors, the company said it had acquired the Holiday Inn Express The Hague, Hotel Occidental 1929 Barcelona and Vinnci Selección Malaga.
In total, the three acquisitions are valued at approximately €100 mln.
The acquisitions in Spain represent an opportunity to acquire prime city-centre assets in two of Spain’s most dynamic markets.
Invesco believes that restrictions on new supply in Barcelona should lead to a faster market recovery compared to other locations.
Meanwhile, In Malaga, demand has outgrown supply consistently since 2014 and the city led Spain’s tourism recovery in 2021.
And, Holiday Inn Express The Hague is a 123-room, upper-midscale hotel with an international brand, leased for a further 44 years to Westmont Hospitality, a long-term partner for Invesco.
David Kellett, MD hotel transactions at Invesco said: ‘We have seen a strong, post-covid recovery in European travel and expect this momentum to improve further as we look across 2022 and beyond, when we expect to see further compelling acquisition opportunities.’
Chris Brassington, senior director of fund managements said: ‘Our intent is to create investments that have potential to deliver long-term compound growth above the market.’
Invesco’s European Hotel programme was named Global Sector Leader by GRESB for 2021 due to sustainability commitments.
