Commerz Real Capital-Management Company (Kapitalverwaltungsgesellschaft, KVG) has acquired a hotel complex in Lisbon
managed under the DoubleTree by Hilton brand for its “Commerz Real Institutional Hotel Fund”.
The
seller is the Portuguese project developer Turismadeira S.A.; it was
agreed that confidentiality be maintained on the purchase price. Located
on Rua Engenheiro Vieira
da Silva in the central business district, the ensemble comprises the
four-star hotel DoubleTree by Hilton Lisbon, Fontana Park, which as a
building was erected in 1910 and comprehensively modernised into a hotel
in 2008, and an extension currently under construction.
The existing seven-storey hotel has 146 rooms and 62 car parking
spaces, as well as conference areas, two restaurants, a bar and a
fitness zone. Following its anticipated completion in 2020 the extension
development is to have 80 suites with about 40 square
metres on average and 40 car parking spaces. In addition, there is to
be a new large conference hall and ballroom. It will be connected to the
existing building as well as to a new main restaurant. Commerz Real has
concluded a triple-net leasing agreement
for a period of 20 years with Fontana Hotels S.A., which is operating
the hotel with Hilton as the manager. This means that the lessee is
responsible for the maintenance of the entire property.
Lisbon is not only Portugal’s economic and political centre, but thanks
to its mild climate also attracts international tourists and business
travellers all year round. According to figures from PwC, capacity
utilisation of hotels in Lisbon has continuously
increased in recent years and is set to amount to just over 80 per cent
in 2019. The revenue per available room (RevPAR) in 2019 is expected to
be around 101 euros, which would be nearly 40 per cent more than in
2016 (73 euros). “Lisbon has established itself
as one of the leading tourism destinations in Europe,” explains Dirk
Schuldes, Global Head of Hospitality at Commerz Real. “At the same time
the hotel market profits from an increasing amount of business
travellers as a result of numerous international trade
fairs in the capital.” DoubleTree by Hilton Lisbon, Fontana Park is
connected to the public transport system by bus and rail. In addition,
there are numerous shopping opportunities as well as gastronomic and
cultural facilities in the immediate vicinity.
The
transaction is already the fourth for the Commerz Real Institutional
Hotel Fund. In the medium to long term the fund, which is structured as
an open-ended special AIF (alternative
investment fund), is to develop a diversified portfolio of business
hotels in the three-to four-star category in international metropolises
with a volume of approx. two billion euros for professional and
semi-professional investors.
Source : Company