Positioned on hospitality real estate, the REIT Atream Hotels just acquired six new hotels. The company is thus confirming its growth strategy on the European continent.
The real estate investment trust acquired midscale and upscale hotels in 5 Flemish cities, including Bruges and Louvain. A collection of 544 rooms was thus purchased for a total of 73M€. Atream is now evaluated at 150M€.
Pascal Savary, Chairman of Atream, explains the choice of this location: "in 2018, the contribution of tourism to Belgium's GDP was 5.3 %, or 24 billion euros in spending related to this business sector that accounts for 274,000 jobs. The hotel sector is driven by the presence of the European Union's main institutions, many corporations and diplomaties. In the months to come we will pursue the investment strategy of the REIT Atream Hotels, by positioning ourselves on hotel assets leased by leading operators over the long term and in markets where the tourism industry contributes fully to economic growth."
Atream takes on 24-year leases for the six properties managed by two hotel operators, Martins Hotels and Different Hotels. This transaction increases the average term of the trust's leases to 19 years from 13 years.
Atream's portfolio comprises 70% hotels and 30% hotel residences and services, such as apartment hotels, tourism, business, student or senior non-medicalized residences, for a total of 126 properties across all categories. Its trust, created in 2016 and specialized in the management of long-term rental property, the REIT Atream Hotels, is pursuing a major expansion strategy based on "properties already in operation and delivering immediate rents". Its value was estimated at €50M at the beginning of the year, after incorporating two additional acquisitions in Q4 2018, namely the 3-star Esterel hotel in Saint-Raphaël (Var, France), operated by Pierre et Vacances, and the Park Inn by Radisson hotel in Nuremberg (Bavaria, Germany). It has market value distribution rates (MVD) of 4.80% in 2017 and 4.60% in 2018, driving its growth and maintaining it. It is mainly active in three European markets, namely France, Germany and the Netherlands.
