A summary of European hotel transactions provided by HVS

Dalata acquires the Apex Hotel London Wall from Apex Hotels

Ireland's Dalata Hotel Group has acquired the long leasehold interest of the four-star, 89-room Apex Hotel London Wall, located in the heart of The City of London's financial district, from Apex Hotels Limited, for £53.4 million (£600,000 per room). There are 107 years remaining on the leasehold. Once the transaction is completed in early July 2023, Dalata will rebrand the property under its Clayton Hotel brand as the Clayton Hotel London Wall. Dalata expects the asset to generate an EBITDA of approximately £4.5 million in 2024, indicating an expected yield of over 8%. This will be Dalata's fifth location in London, with the acquisition reportedly funded by the reinvestment of funds generated by the group's existing hotels. Once the Maldron Hotel Finsbury Park opens in June 2023 and the Maldron Hotel Shoreditch opens in 2024, the group's London properties will total 877 keys.

Commerz Real acquires the Steigenberger Hotel de Saxe in Dresden, Germany

Commerz Real, on behalf of the open-ended real estate fund Hausinvest, has acquired the four-star, 185-room Steigenberger Hotel de Saxe located in the heart of the old town in Dresden, Germany, from German real estate firm TLG Immobilien. The property will continue to be operated by Deutsche Hospitality under a longterm lease agreement. Renovated in 2019, the hotel includes a restaurant, lobby bar, spa and wellness facilities and conference rooms. There are four retail spaces, totalling 1,200 sqm, on the basement and ground floors, rented to Geox, Douglas, Picture People and Brocante Antik, as well as an F&B outlet operated by Radeberger brewery. TLG Immobilien acquired the property in 2005 when it was still being constructed by Baywobau, as part of a forward-funding deal.

Union Investment acquires the Grand Palais building in Heringsdorf, Germany, from Resort Hotel Kaiserbad

German investment manager Union Investment has acquired the main Grand Palais building of the Steigenberger Grandhotel & Spa complex in the coastal resort of Seebad Heringsdorf on the island of Usedom, in northern Germany, for an undisclosed price, from hotel group Resort Hotel Kaiserbad. The Grand Palais building houses 120 of the 5-star resort's 173 keys. Future plans include a 10-room extension set to be added in 2025, alongside comprehensive energy efficiency improvements, with expected completion in 2027. Resort Hotel Kaiserbad will remain as operator and lessee on the property under a 20-year agreement. The Palais Wilhelm and Palais Bismark buildings, also forming part of the resort complex, will remain under Resort Hotel Kaiserbad's ownership. Union Investment completed the acquisition on behalf of its open-ended real estate fund Immofunds 1, with this property marking the group's second resort hotel acquisition, following last year's purchase of the Caro & Selig Autograph Collection hotel on Lake Tegernsee, Germany.

City ID Group acquires the Palace Baronesa in Lisbon

Dutch aparthotel group City ID has acquired the 16th century Palace Baronesa asset in Lisbon, Portugal, on Largo Conde-Barao in the Santos area, for an undisclosed amount and from an undisclosed seller. The historic palace has most recently served as an office building and will now be converted into an aparthotel. The future BREEAM-certified 88-room aparthotel is set to contain rooms ranging from studios to suites, a central interior garden with swimming pool and an open-plan restaurant, as well as a wellness area and co-working spaces. This latest property marks the group's sixth acquisition, with the other City ID aparthotel properties located in Amsterdam, London (under development) and Dublin (under development). The group is backed by pension funds APG (The Netherlands) and Aware Super (Australia).

Apex Alliance and Pavăl acquire the Grand Hotel Gardone in Italy from the Mizzaro-Papini family

Lithuanian hotel group Apex Alliance has partnered with Romanian investment firm Pavăl Holding (developed by entrepreneur brothers Adrian and Dragos Paval) to acquire the four-star, 167-room Grand Hotel Gardone on the shore of Lake Garda in northern Italy from the Mizzaro-Papini family. Opened in 1884, the historic hotel will close for a €45 million renovation following the 2023 summer season and is expected to re-open as a 5-star hotel in 2026, under an international chain's brand. Apex Alliance Hotel Management will be the third-party operator. The operator currently manages 15 hotels across Europe under brands such as Hilton, Marriott and Radisson. This acquisition marks Apex Alliances' second hotel investment in Italy after the 324-room Hampton by Hilton hotel in Venice, currently under construction and set to open in the summer of 2024.

Midstar acquires the Scandic Borlange hotel in Sweden from Diös

Swedish hotel investment and asset management company Midstar Hotels has acquired a mixed-use property containing the 154-room Scandic Borlänge hotel, from Swedish commercial and residential property manager Diös Fastigheter in Borlänge, Sweden, for SEK 200 million (€17.7 million). Borlänge is located some 220 kms north-west of Stockholm. Scandic is the mixed-use property's largest commercial tenant. The property also includes some residential units. The total lettable area of the asset is 14,000 sqm, with an annual rental value of approximately €1.16 million.

Capilon Hotels and Awan Group acquire the Prince William Hotel in central London

UK family group Capilon Hotels and international real estate investor Awan Group have jointly acquired the three-star, 49-room boutique Prince William Hotel in Paddington, London, for £15 million (£306,000 per room) from an undisclosed seller. The hotel is located just five minutes walk from London's Hyde Park. The 18th century listed building has recently undergone a £1 million refurbishment programme. Capilon Group is a family business that operates, invests and develops hotels across London. The hotel was previously purchased by Elite Group in 2014 for circa £8 million.

Tikehau Capital sells the Hotel Touraine Opéra in Paris

French alternative management and investment group Tikehau Capital has sold the 4-star, 39-room Hotel Touraine Opéra in the 9th arrondissement of Paris, France, for an undisclosed amount, to a private family group. Situated close to the Paris Opera and large department stores, within an 18th century building, the hotel was recently completely renovated. Tikehau acquired the hotel in partnership with Le Groupe de l'Hôtellerie in 2019, along with the four-star, 59-room Hotel Prélude Opéra.

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