Avignon Capital, the European property investment firm, has acquired the NH Amsterdam Zuid hotel for €45m. This is Avignon Capital’s second hotel acquisition and marks the firm’s first acquisition in the Dutch market.
The NH Amsterdam Zuid hotel is based in the Zuidas business district of Amsterdam, an area strategically-positioned between the city centre and Schiphol Airport. The 4-star hotel covers 10,000 m² and contains 213 guest rooms and 18 conference rooms. The property was originally constructed in 2002 and comprehensively refurbished as a hotel in 2008.
Amsterdam’s tourist industry has expanded rapidly over the last decade, resulting in a rising demand for well-located hotels; between 2012 and 2016, the number of guests staying in Amsterdam’s hotels has risen from 5.5 to 7m. Moreover, research by Deloitte in Q4 2016 reported that Amsterdam has usurped London’s position as the most attractive hotel investment destination in Europe.
The firm has identified the Netherlands as a focus area within its European expansion strategy, where it sees multiple real estate investment opportunities across a variety of sectors. Avignon Capital’s entry into the Dutch market marks the seventh country in which the firm has done business, following the UK, Germany, Spain, Denmark, Norway and Poland.
Patrick Flaton, CFOO at Avignon Capital, said: “The acquisition of the NH Amsterdam Zuid hotel was a rare, off-market opportunity to acquire a prime hotel located in Amsterdam’s strongest business district. The asset is securely let to a strong covenant for a further 42 years which offers a low risk, stable income base throughout the hold period. At Avignon we always look to invest in well-located properties in key European cities, therefore we are delighted with this deal and look forward to making further strides in the Dutch and wider European market.”
Susanne van Dijkum, Lawyer at Haagstate Advocaten N.V said: “We are delighted to have advised Avignon Capital on its first commercial property acquisition in the Netherlands and hope Avignon will continue to expand its Dutch portfolio with other landmark properties.”