AXA checks into 2,300-room European hotel portfolio for €531m

Global real asset investor AXA Investment Managers - Real Assets (AXA IMRA) has acquired a portfolio of 11 European hotels from Principal Hotel Immobilien Spezialfonds, managed by European real estate investment manager Principal Real Estate, for a net price of €531 mln. 

The 2,339-room portfolio comprises a mix of business, trade fair and leisure driven properties, with seven located in key cities in Germany and the four other assets located in the cities of Vienna, Turin, Lisbon and The Hague. The hotels are operated by international brands including Accor, Hilton and NH on long leases.

'The hotels within this diversified portfolio are all leased on strong covenants and benefit from the solid local economics as well as tourist and business demand drivers that have underpinned their long-term performance,' said John O’Driscoll, head of transactions Europe, at AXA IMRA.

'With various asset management initiatives already identified, including on-going renovation works being undertaken at two of the hotels, we are confident that we can further enhance the long term income generated from the portfolio, on behalf of our clients,' O’Driscoll added.

AXA IMRA currently manages a €3 bn portfolio of hotels across the globe on behalf of clients, as part of its stated objective to focus on 'alternative asset classes supported by clear structurally-driven growth drivers'. In the last seven months alone, acquisitions have included a four hotel portfolio in Australia, a prime Amsterdam city centre hotel and a hotel development in Hiroshima, Japan.

'This portfolio acquisition is further evidence of our ability to gain access to unique off market opportunities and highlights the value of our strong reputation and benefit of having local and sector expertise to efficiently execute this complex, cross border deal,' O’Driscoll concluded.

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