Limestone Capital has acquired Hotel U Palazzu Serenu, a boutique luxury hotel in Corsica. The investment comes three months after the announcement of Limestone Capital’s Amethyst Fund launch in September 2020 and represents the 4th hotel acquisition for Amethyst Fund. The deal highlights the fund’s underlying thesis that turning small, underperforming hotels into professionally managed, tech-enabled boutique hotels will offer highly-attractive equity returns in the post-COVID luxury hospitality sector. The purchase price was not disclosed.
As part of the deal, Limestone will make thoughtful CAPEX investment, integrate technology to increase distribution and reduce cost and reposition the property for an audience seeking unspoiled nature and authentic travel experiences at a premium price point. As with all of its investments, it will place the values of sustainability, wellness, and integration at the heart of the hotel experience.
Set at the foot of Oletta, one of the most striking villages in Corsica, the hotel boasts an authentic atmosphere and beautiful location. The hotel is integrated into the local community, complementing Limestone’s inclusionary approach and the foundation of its transformation process.
Benjamin Habbel, Managing Partner of Limestone Capital said: “We continue to see excellent opportunities in the boutique hotel sector across Europe with double-digit return potential. With recent major steps towards the full reopening of the international hospitality sector, we are confident that recovery following COVID-19 will be swift for premium assets in sought-after destinations. U Palazzu Serenu is an exceptional opportunity with the potential to deliver strong yields. It will benefit from centralized revenue management, tech-driven distribution and services, and experienced management. It helps that Corsica is one of the few undiscovered gems of Europe. We expect strong growth from arrivals from Northern Europe, Germany, and the US.”
