European hotel portfolio sold by Invesco for €415m

Invesco Real Estate has sold a portfolio of seven European hotels to Swedish operator Pandox for €415m.

The portfolio was sold from Invesco’s second dedicated pan-European hotel fund, in a deal which will see the fund disinvested.

Located in Austria, Germany and the Netherlands, the properties are part of the NH, Radisson Blu and Park hotel brands. 

Marc Socker, managing director of hotel fund management at Invesco Real Estate, said: “We are delighted with the success of our second hotel portfolio for our investors, the sale of which is part of our strategic planned approach for the fund. 

“We were able to manage the portfolio during an interesting market cycle and will realise a return for our investors above the fund’s original target of a net IRR of 12%, prior to the formal end of the fund’s life.”

Invesco was one of the first investment managers to launch a dedicated hotel fund in 2006, with its successor fund launched in 2011. Since then it has invested more than €2bn into the sector.  

The company said it would continue to seek investments in the European hotel sector. 

Managing director Andy Rofe said: “Our traditional approach has been to focus on modern mid-market hotels in strategic locations such as city centres, airports and conference centres, however, our diverse global client base have different risk/return appetites which means we are investing in a number of different hotel concepts from hostels and mezzanine loans to extended stays.”  

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