Invesco Real Estate (IRE), a global real estate investment manager, is pleased to announce that it has acquired the 232-room Sheraton Grand Hotel Krakow for €70m on behalf of one of its UK pension fund separate account clients.
- Invesco Real Estate (IRE) acquires refurbished Sheraton Grand Hotel in central Krakow for €70m.
- Collaboration with operating partner, Algonquin, who has a track record of managing and repositioning European hotels.
- One of the strongest performing hotels in the CEE market, providing long-term income through strong supply and demand fundamentals.
Marc Socker, Managing Director – Hotel Fund Management at Invesco Real Estate comments: “The Sheraton Grand Hotel Krakow is one of the strongest performing hotels in the CEE region given its prime location in the city’s Old Town, its proven track record and leading position in an undersupplied hotel market. The hotel has recently undergone a complete refurbishment, resulting in its rebranding into the upper-upscale segment of the market into a Sheraton Grand Hotel, so we are delighted to add this upmarket hotel to our portfolio of assets.”
Krakow and its hotel market have benefitted from the city further positioning itself over the past five years as a prime destination for major businesses, a key academic hub, significant conference facilities and leisure in Poland as well as demand generators such as the airport extension which allows for increased numbers of visitors to the region.
Chris Brassington, Director – Fund Management at Invesco Real Estate adds: “This is a high quality hotel in a core CBD location with long-term income in a relatively stable economy, and supported by strong demand/ supply fundamentals. We are pleased to add additional hotel exposure to our client’s existing portfolio. It is thanks to our dedicated hotel team who are experts in this field and have extensive knowledge of both the hotel operational business and underlying real estate that we were able to create and structure this opportunity.”
Stéphane Obadia, Managing Director, Head of Development at Algonquin comments: “Algonquin is delighted with its first collaboration with Invesco Real Estate on this hotel. We have been very pleased with the work accomplished so far with the brand and hotel teams, which has led to the recent upgrade of the hotel to its Sheraton Grand re-branding. This has been key to establishing the hotel as a market leader in Krakow, and we are looking forward to building on this continued success.”
IRE was assisted by legal advisers CMS Cameron McKenna and financial advisers PWC in the transaction. Algonquin was assisted by legal advisers DZP.