Invesco Real Estate (IRE), the global real estate investment manager, is pleased to announce that it has acquired the Holiday Inn Eindhoven for 22.5 million in a sale and leaseback acquisition with Hampshire Hospitality, one of the largest integrated hotel management organizations in the Netherlands.
The acquired hotel is long-let on a 25-year hybrid lease subject to a franchise agreement with the InterContinental Hotel Group, an established international operator, under the Holiday Inn brand. It has been purchased for IRE's second dedicated hotel fund.
Erik Jacobs, Transactions Manager - Hotel Fund Management, IRE comments: "We are delighted with the acquisition of this prominent city center hotel in Eindhoven. The transaction fits the existing fund strategy well with its focus on fundamentals, being a quality mid-market hotel, good investment lot size, strategic location and the long lease terms, as well as providing diversification to the portfolio in terms of market and brand.
"Eindhoven is one of the key cities in the Netherlands, it has an expanding international airport and is a growing technical-hub in Europe, not least because it is the home of Philips Electronics, whose performance is strongly correlated to the local hotel market. For this reason, the Eindhoven hotel market benefits from strong corporate demand and we believe the timing was optimal to acquire such a high quality asset at the low-end of the trading cycle, in a strong marketplace."
The Holiday Inn Eindhoven is a modern, four-star business hotel with 206 spacious and light rooms and six meeting rooms, including a 40-capacity boardroom. It also benefits from a 100-seater restaurant, bar, fitness room including sauna/steam room, and indoor pool as well as a 150-space car park.
The hotel is located in the center of Eindhoven, opposite the central railway station and bus station, and close to the Technical University, office park and PSV, the local football stadium. The hotel was fully renovated in 2009.
IRE's dedicated European hotel funds currently own, in total, 23 mid-market hotels with over 5,000 rooms across the European Union with total assets under management of ca. 860 million.
Source: Invesco Real Estate