Invesco Real Estate's European Hotel Fund has marked its French market debut with the off-market acquisition of the 189-room Radisson Blu in Marseille for €43.5m, bringing the fund's portfolio to 11 hotels across Europe's gateway cities. The deal, purchased from Union Investment after a 20-year hold, underscores continued institutional conviction in southern Europe's recovering hospitality sector.
Positioned in Marseille's historic Old Port district, the upmarket property underwent comprehensive refurbishment last year, incorporating new window insulation and LED lighting to achieve BREEAM Very Good certification. The hotel operates under a long-term lease to Radisson Hotel Group, which manages over 1,520 properties globally, including 22 across France, providing institutional-grade income security rarely seen in single-asset hotel transactions.
The 700 m² of event space, 12 meeting rooms, panoramic outdoor pool and fitness centre position the asset to capitalise on Marseille's evolution as southern France's primary economic hub and the country's second-largest city. For investors, the timing proves strategic as overnight stays continue climbing whilst prime hotel stock in France's tier-one cities remains constrained, a supply dynamic that typically translates to sustained revenue per available room growth and enhanced exit valuations.
"The upscale Radisson Blu in Marseille is a compelling addition to our portfolio, with Marseille continuing to grow as a European destination for all types of travellers. It marks the fund's first entry into the French market and provides valuable diversification in both brand and tenant profile," said Capucine Pedrazzini, Director, Fund Management & Co-Head of Hotel Investments at Invesco Real Estate.
Invesco Real Estate's dedicated hotels team commands a 22-year track record deploying over €2bn equity into the sector, focusing on prime hotels in European gateway cities through active asset management strategies. The firm manages €78.4bn in global real estate assets under management, with €15.3bn across European markets as of March 2025.
"The EHF's strategy is to deliver long-term income with access to growth, from assets in high-quality locations and with best-in-class ESG credentials. The Marseille acquisition is one which fits this criteria and we believe offers attractive relative pricing, with the potential for growth and returns that are accretive to performance," added Chris Brassington, Senior Director, Fund Management at Invesco Real Estate.
People mentioned:
- Capucine Pedrazzini, Director, Fund Management & Co-Head of Hotel Investments, Invesco Real Estate
- Chris Brassington, Senior Director, Fund Management, Invesco Real Estate
Companies mentioned:
- Invesco Real Estate, Global real estate investment manager
- Union Investment, Seller, German asset manager
- Radisson Hotel Group, Hotel operator and leaseholder
