On Tuesday 8 September, Covivio announces the completion of the acquisition of 8 hotels that will be operated under the NH Hotels brand in Italy and Eastern Europe. The transaction amounts to 573 million euros including 56 million euros of CAPEX works in two properties.
Although delayed by the weeks of lockdown, the deal was concluded for 1,115 rooms with 15-year leases extendable to 30 years. NH remains a loyal partner of the property company, which already owned 11 properties operated by the Spanish group, now owned by the Thai Minor Hotel Group since the end of 2018.
"Even if we have to lay low for a while, the fundamentals are there. World demographics are still growing strongly, just as tourism will continue its exponential development. This portfolio is mainly aimed at a leisure clientele" underlines Dominique Ozanne, CEO Covivio Hotels.
Dominique Ozanne was also satisfied to have been able to find agreements with the majority of its operator partners to make up for the loss of revenue generated by the weeks of lockdown. A franchise period was granted during the closure of the properties in exchange for an extension of the leases.
"Everyone was able to put themselves in each other's shoes, which allowed us to find the most balanced agreement possible."
The eight properties in the portfolio, two of which are undergoing renovation (Florence and Nice), break down as follows:
|Hotel Plaza Nice||152 rooms|
|Palazzo Naiadi Roma||238 rooms|
|Dei Dogi Venezia||64 rooms|
|Bellini Venezia||100 rooms|
|Palazzo Gaddi Florence||86 rooms|
|NY Palace Budapest||185 rooms|
|NY Residence Budapest||138 rooms|
|Carlo IV Prague||152 rooms|
The work will involve €30 million to change the brand of the properties and the remaining €56 million in CAPEX for the renovation of the Plaza Nice, which will reopen in the second half of 2021, and a property in Venice, which is scheduled to reopen at the end of the year.
The European real estate company is pursuing its development strategy, focusing primarily on the 5 largest European markets as well as the Polish markets, a country where growth is among the most dynamic in Europe.