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PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, has revealed it has secured the required regulatory approvals for its recently launched European Hospitality Real Estate Fund.
The Fund enables the group to “further accelerate” its strategy of identifying, acquiring and developing attractive hotel assets across a range of key European markets. Hotels acquired by the Fund will be operated by PPHE’s hospitality operating platform.
PPHE said it intends to participate in the fund for an amount up to €50m (£44.2m) in cash and/or assets.
In March 2023, the group announced Clal Insurance as the fund’s cornerstone investor, which has committed to invest up to €75m (£66.4m). Following receipt of regulatory approvals additional investors are now able to participate for the remaining €125m (£110m) equity.
With full equity subscription and combined with a targeted 50% bank leverage the investment potential of the fund will be around €500m (£442m).
Boris Ivesha, president and CEO of PPHE Hotel Group, said: “We are delighted to have secured regulatory approval for the new Fund, which is one of the many entrepreneurial ways in which the Group is delivering value creation for our shareholders.”
