Invesco's first hotel fund almost fully invested

Invesco Real Estate has acquired a Mercure hotel in Vienna for its first dedicated pan-European hotel fund. The vendor was a German fund.

Marc Socker, Director of Hotel Fund Management at Invesco, told PropertyEU at EXPO REAL that the fund is now near to being fully invested. It now owns 16 mid-range hotels with a total asset value of about EUR 650 mln.

On 1 October the fund’s 175-room Mercure hotel in Bratislava, Slovakia opened for business. That hotel was acquired as part of a five-asset forward-funding portfolio deal with hotel group Accor earlier this year. The investment volume for the portfolio was EUR 154 mln.

Earlier last week, Invesco announced the launch of a successor pan-European hotel fund with an exclusivity agreement to purchase a EUR 168 mln seed portfolio. ‘We hope to raise EUR 350-500 mln for the new fund which will give us firepower of between EUR 750 mln and EUR 1 bn,’ Simon Redman, head of product management at Invesco Real Estate, said.