Principal Real Estate Europe is delighted to confirm the closing of the acquisition of the Cour des Loges Hotel in Lyon for €24.50m on behalf of the Principal Hotel Real Estate Fund II from a local real estate investor group. The 5* hotel is located in the heart of the old town of Lyon, a UNESCO World Heritage-listed district. The Cour des Loges has 60 rooms, two restaurants, a bar, a spa, several meeting rooms as well as a hidden garden. As part of the transaction and its value-add strategy, Principal entered into a long-term lease with the Radisson Hotel Group, and in cooperation with Radisson will renovate and reposition the hotel under the Radisson Collection brand. Following the acquisition of the Ona Hotel Terra last month, this acquisition is another example of the value-add strategy of the Hotelfund II: acquiring high quality 3-5* hotels in strategic locations, in major cities across Europe with significant potential to increase value.
Jochen Schaefer-Suren, CEO of Principal’s Hotel and Leisure division, commented: “The Cour des Loges in Lyon is a unique hotel and a great acquisition for our Hotelfund II and we are thankful to our operating partner Radisson, one of the leading international hotel groups with a very strong covenant, with whom we were able to sign a long-term lease agreement. The location, paired with the quality of the asset and the potential of the planned renovation and repositioning, is exactly the kind of value-add hotel investments Principal is looking for. As a result, we are still looking for further hotel investments for Hotelfund II in 2020 and beyond.”