Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
PPHE will be launching a new European hospitality real estate fund of up to €250 (£220.4m), which will enable strategic acquisitions of hotels focusing primarily on value-add investments across Europe.
All hotels acquired using this fund will be operated by the group’s hospitality operating platform.
The group has also confirmed that it has reached an agreement with Clal Insurance to participate as a cornerstone investor in the fund, having committed to investing up to €75m (£66m), with an upper limit of 49% participation at any point in time.
In its initial form, participation in the fund will be 51% by PPHE and 49% by Clal. In consideration for its 51% participation, PPHE will contribute the ownership of its existing Rome asset to the fund for an agreed value of €29.3m (£25.8m). Clal will subscribe an initial €28.1m (£24.7m) in cash for an initial 49% participation in the fund.
According to the hotel group, following completion, the fund will continue to be consolidated into the group’s financial accounts and any future contributions to the fund from PPHE will be provided either in the form of cash from available resources or additional assets.
It is envisaged that all future hotels within the fund will enter into long-term management contracts with PPHE.
