+39 (0)5411799167 office@thrends-italy.com

PPHE Hotel Group launches European Hospitality Real Estate Fund

PPHE Hotel Group is at an advanced stage of discussions with an investor (not yet known) in order to launch a new real estate fund European hospitality property fund with capital of up to 250 million euros. The company, which manages hotels and resorts, has stated that it would participate in the fund for a maximum amount of 50 million euros and/or assets, while the potential lead investor will participate for a maximum amount of Euro 75 million, with a maximum 49% participation. PPHE intends to contribute to the fund the Hotel Londra & Cargill in Rome as a “seed asset,” which is currently in the process of repositioning into a luxury hotel. The group took over the 101-key 4* hotel from the De Romanis family, in 2021, for 34.5 mln euros (approx. 342 thousand euros/key). The opening of the Hotel London & Cargill, scheduled for the first quarter of 2024, will represent the Group’s debut in Italy under the “Art’otel” brand. After the repositioning, the hotel will have 99 keys, an art gallery, a restaurant and bar.

Once the fund has obtained regulatory approval, other investors will be able to participate for the remaining capital of 125 million euros. The fund would enable the group to accelerate further its strategy of identifying, acquiring and developing assets hotels in a number of key European markets. Investors in the Fund will benefit from the PPHE’s integrated owner-operator model and tap into it, gaining greater access to international brands and increased value of properties. Indeed, recall that PPHE has strongly supported the expansion of the Park Plaza by Radisson in Europe, operating since 2002 with an exclusive territorial license in Europe, the Middle East and Africa.

In May 2022, the group also signed long-term agreements term under which PPHE would have the ability to access and leverage the entire suite of brands in the RHG portfolio, including Radisson Collection, Radisson Blu and Radisson RED, on favorable commercial terms.

Subscribe to The Bulletin

Related Posts