Henderson Park and Hines have acquired a portfolio of five hotels on the popular Greek island of Crete. The purchase, comprising two separate transactions, marks the joint venture’s second foray into the Greek hotel market, following the acquisition in 2017 of the former Ledra hotel, which was transformed by Hines and Henderson Park into the five-star Grand Hyatt hotel, now one of Athens’ finest and most successful hotels.
The 1,094-room, c. 67,000m² portfolio comprises five seafront hotels in key resort locations across the island, as follows:
- Hermes and Coral, two adjacent hotels with 218 and 170 rooms respectively, centrally located in the coastal city of Agios Nikolaos;
- Santa Marina and Apollonia, with 208 and 336 rooms respectively, benefitting from prime seafront locations in Crete’s capital city, Heraklion, which is just 5km from the island’s main international airport and close to world-famous archaeological site Knossos;
- a 162-room resort and spa hotel located in Sitia, a coastal town on the west of the island.
All of the hotels have strong track records of occupancy levels and offer uplift through the restructuring of the ownership and capital structure, as well as significant potential to create value over the medium and long term through refurbishment, brand repositioning and proactive management at the asset level.
Nick Weber, Founding Partner of Henderson Park, said: “While the leisure industry has no doubt been temporarily impacted by the COVID-19 crisis, we are firm believers that it will bounce back. With this transaction, we have been able to provide a solution to a distressed situation and gain control of a number of high quality, high-potential assets in a globally leading tourist destination at an attractive entry basis. Government plans to begin reopening Greece are reaffirming our overall investment thesis and we have strong conviction in the significant repositioning opportunities that have been identified to enhance longer-term value. We are pleased to be working with Hines on yet another exciting Greek hospitality project where we believe our combined global expertise and institutional approach will give us a distinct competitive advantage in a market, where hotel ownership is surprisingly fragmented and characterised by many local owner-operators.”
Paul Gomopoulos, Senior Managing Director and country head for Greece at Hines said: “While the headwinds from the global pandemic will clearly have a material impact on the leisure and hospitality sectors, we have confidence in the mid to long term prospects and as such are committed to pursuing further opportunities in this market. We are looking forward to continuing our successful partnership with Henderson Park, which offers a very effective combination of international expertise and local knowledge.”