Dutch asset management company Odyssey Fund Management has launched a fund for institutional investors to invest in European hotels. Odyssey European Hotel Fund invests in three and four-star hotels located in major and larger cities in Western European countries. The focus is on the Netherlands, Belgium, UK, Germany and Spain. All hotels operate on the basis of lease agreements with reputable national and international chains.
Dutch asset management company Odyssey Fund Management has launched a fund for institutional investors to invest in European hotels. Odyssey European Hotel Fund invests in three and four-star hotels located in major and larger cities in Western European countries. The focus is on the Netherlands, Belgium, UK, Germany and Spain. All hotels operate on the basis of lease agreements with reputable national and international chains.
The Netherlands-based fund is targeting an IRR of 9%-10% and has a seven to nine-year life. Odyssey is targeting a size of EUR 400 mln with conservative gearing. It is open to institutional investors with investments starting from EUR 10 mln.
The current deal flow totals almost EUR 220 mln and consists of trading properties and hotels to be built. In all cases Odyssey carried out feasibility studies to make sure that the business fundamentals are right. Margot Cooymans from Odyssey said that all hotels come on long-term lease agreements and are backed by operators with good credit ratings. The fund is planning to announce the first transactions in the first quarter of 2010.
