European real estate investor Henderson Park and US-based developer-investor Hines have agreed upon a franchise agreement with Hyatt Hotels Corporation for the former Ledra Hotel in central Athens.
Under the agreement the property will be operated as a Grand Hyatt hotel, in the brand's first foray into the Greek market.
Henderson Park and Hines acquired the former five-star hotel in June 2017 for €33 mln, in what was the first investment into the Greek market for both companies.
The hotel is currently undergoing a major redevelopment. Henderson Park and Hines have already stripped the asset back to its core and shell and reconstruction is currently underway, with delivery planned for the third quarter of 2018. The relaunched establishment will offer 309 well-appointed hotel rooms and suites across 10 floors, and a roof-top restaurant and pool with panoramic views of the city and the Acropolis.
Specialist asset manager of upscale and luxury hotels, Kokari, has been instructed as operating partner, responsible for managing the hotel.
Nick Weber, founding partner of Henderson Park, said: 'Our investment into the hotel was driven by a recognition of both its preeminent standing as an historic luxury asset as well as by the huge potential we believed it offered. Our success in attracting the Grand Hyatt brand, one of the world’s leading premium brands, to the newly redeveloped hotel is entirely fitting with the its rich heritage and a thorough endorsement of our ambitious repositioning strategy. Grand Hyatt Athens will be a strong addition to Henderson Park’s €2.0 bn portfolio of iconic European hotels and we hope that this agreement will mark just the first stage of building a rewarding long-term relationship with Hyatt.'
Lars Huber, CEO of Hines Europe, added: 'The purchase of the hotel played to Hines’ strengths of repositioning and asset management, undertaking a major renovation to deliver high-quality hotel accommodation in the centre of Athens. Our decision to enter a franchise agreement with Hyatt is the next stage of that repositioning, bringing the global Grand Hyatt brand to the Greek market for the first time – a testament of the attractiveness of the asset. Hines has been actively assessing opportunities in the Greek market for some time and we continue to seek out investment options.'