Covivio Buys Eight Hotels in Europe for €573m
Main Photo: The Palazzo Gaddi, Florence
Date: September 2020
Locations: Rome, Florence, Venice (x2), Nice, Prague and Budapest (x2)
Names: Palazzo Naiadi in Rome, the Carlo IV in Prague, the Plaza Hotel in Nice and the New York Palace and New York Residence in Budapest, Palazzo Gaddi in Florence, Hotel Dei Dogi and Hotel Bellini in Venice
No. of Keys: 1,115
Seller: Minnesota-based global investment firm Värde Partners …the hotels were being managed by Dedica Anthology.
Buyer: Covivio Hotels, has acquired a portfolio of eight hotels located in major European tourist destinations, in Europe for €573m (€248m Group share), including €86m of works.
With a total of 1,115 rooms, these hotels will be operated by NH Hotel Group through long-term triple net leases with variable rents including a guaranteed minimum, resulting in a minimum return of 4.7%. The agreement is for an initial term of 15 firm years, extendable to 30 years at the request of NH Hotel Group.
In addition, a €86m works program financed by Covivio is already planned for the entire portfolio, which has significant growth potential.
Six hotels are currently open and will be the subject of work related to the change of brand name for approximately €30m.
The hotels in Florence and Nice, which are currently being renovated (approximately €56m in capex planned), will reopen by the end of 2020 and in the second half of 2021 respectively.
Strengthened by their long-term partnership, Covivio and NH Hotel Group are thus completing this acquisition announced last January and postponed to September given the health context. Initiated in 2014, the collaboration with NH Hotel Group began with the acquisition of a hotel in the centre of Amsterdam, then continued between 2016 and 2018 with the purchase of 10 hotels in Germany, the Netherlands and Spain.
With this acquisition, Covivio reinforces its status as the European leader in the hotel real estate market, with a unique premium portfolio of €6.8bn (€2.6bn GDP) located in the city centres of major European tourist destinations.
Price: €573m
Price per Key: €513,901
THPT Comment: This is actually the closing of the deal, first mooted in late 2019/early 2020.
First Seen: Business Immo
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