EU: Hospitality developer, owner and operator, PPHE Hotel Group, is in advanced discussions to launch a European Hospitality Real Estate Fund of up to €250 million equity.
PPHE intends to participate in the fund, up to €50 million in cash and/or assets, with a cornerstone investor participating up to €75 million (with an upper limit of 49 per cent participation).
The art’otel Rome, which is currently undergoing refurbishment and repositioning, will be contributed to the fund as a seed asset by PPHE. When complete, the hotel will be managed by the group under its hospitality management platform.
Additional investors will be able to participate for the remaining €125 million equity. PPHE would enter into hotel management contracts for each of the fund’s owned hotels. Where appropriate, the group would also leverage its access to Radisson’s portfolio of brands.
The launch of the fund is subject to regulatory approval.
Boris Ivesha, president and CEO of PPHE Hotel Group, said: “This new fund would represent another significant step forward for PPHE strategically, as we continue to expand our leading portfolio of premium hotels while also taking advantage of our unique flexible and scalable in-house hospitality management platform.
“The fund would enable us to accelerate our ability to capture the attractive opportunities we see in front of us, via the use of non-dilutive third-party capital, while also playing to our strengths as a fully integrated acquiror, developer and manager of attractive city centre hotels.
“This would also provide a compelling financial return profile for all fund investors, including PPHE, helping to further drive our future growth and enhance returns for our own shareholders,” Ivesha added.
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