Covivio completes the acquisition of 8 hotels leased to NH Hotels
Friday, 11th September 2020
Source : Covivio

Covivio has completed the acquisition of the portfolio of eight hotels located in Rome, Florence, Venice (x2), as well as in Nice, Prague and Budapest (x2) for €573 million.

This portfolio of high-end establishments in prime locations includes several emblematic hotels such as the Palazzo Naiadi in Rome (photo below), the Carlo IV in Prague, the Plaza in Nice and the NY Palace in Budapest.

A strengthened partnership with NH Hotel Group

Totalling 1,115 rooms, the hotels will be operated by NH Hotel Group through long term triple net lease contracts1 with minimum guaranteed variable rent, generating a minimum yield of 4.7%. The agreement has an initial duration of 15 years, extendible at NH Hotel Group’s option to 30 years.

Besides, Covivio is pursuing a capex program of €86 million for the entire portfolio, that shows great potential for growth:

  • 6 hotels are currently open and will undergo rebranding works (around €30 million)
  • The hotels in Florence and Nice, under renovation (around €56 million of capex expected), will reopen respectively by end-2020 and in the second semester of 2021.

Thanks to their strong long-term partnership, Covivio and NH Hotel Group have completed this acquisition, which was announced last January and postponed to September due to the health environment. Initiated in 2014, the collaboration with NH Hotel Group began with the acquisition of a hotel in the centre of Amsterdam and then continued between 2016 and 2018 with the purchase of ten hotels in Germany, the Netherlands and Spain.

A portfolio ever more strategic for major hotel operators
With this acquisition, Covivio bolsters its status as European leader in the hotel real estate market, with a portfolio of €6.8 billion (€2.6 billion Group share) located in the city-centre of major European touristic destinations.

Despite an unprecedented crisis, Covivio, through this investment, highlights its confidence in the long-term fundamentals of the hotel industry and its capacity of recovery. Covivio, with its recognized platform and solid track record, is currently partnered with nearly 20 hotel operators, representing about 30 brand names spread out over 12 European countries.

1 Excluding Nice

 Latest News  (Click title to read article)

 Latest Articles  (Click title to read)

 Most Read Articles  (Click title to read)

~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2024 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy