Hotels: Covivio continues its European expansion and acquires nearly EUR620 M
of emblematic hotels in Europe
Covivio, through its subsidiary Covivio Hotels(1), signs an agreement to
acquire a portfolio of eight hotels located in Rome, Florence, Venice, as well
as in Nice, Prague and Budapest for EUR573 million (capex included). In
addition, the group announces the acquisition of a Hilton hotel in Dublin for
EUR45.5 million. These new transactions mark the continuation of Covivio's
European expansion in major touristic destinations in Italy, the Czech
Republic, Hungary and Ireland.
An entry in the Italian hotels market
The first transaction covers the acquisition, from Värde Partners, a leading
global alternative investment firm, of a portfolio of eight hotels mostly
classified 5* and located in the city centres of large European metropolitan
areas: Rome, Florence, Venice (x2), Budapest (x2), Prague and Nice. This
portfolio of high-end establishments in prime locations includes several
emblematic hotels such as the Palazzo Naiadi in Rome, the Carlo IV in Prague,
the Plaza in Nice and the NY Palace in Budapest.
With this major transaction, which will be completed at the end of the first
half of 2020, Covivio, already historically present in the offices segment in
Milan, is firmly established in the Italian hotels market. Third-ranked world
destination in number of overnight stays (429 million recorded in 2018), Italy
has a hotel real estate offering that is disparate and needs to be renovated,
with a very weak rate of penetration of major brands (9.6% vs 48% in France).
Due to its local platform and recognised expertise, Covivio aims to strengthen
the attractiveness and profitability of the portfolio through a capex
A strengthened partnership with NH Hotel Group around a portfolio with major
potential for value creation
Totalling 1,115 rooms, these hotels will be operated under the brands NH
Collection, NH Hotels and Anantara Hotels & Resorts, the latest being a very
high-end brand well consolidated in the Asian markets and that the NH Hotel
Group is introducing currently in Europe. For that, Covivio and NH Hotel Group
(part of Minor International) signed long term triple net(2) lease contracts
with minimum guaranteed variable rent. The agreement has an initial duration of
15 years, extendible at NH Hotel Group's option to 30 years. Covivio is now
pursuing a capex program for the entire portfolio, that shows great potential
Initiated in 2014, the collaboration with NH Hotel Group began with the
acquisition of a hotel in the centre of Amsterdam and then continued between
2016 and 2018 with the purchase of ten hotels in Germany, the Netherlands and
Spain. A leading operator in Italy, NH Hotel Group has extensive expertise in
the international high-end segment, which will be an additional advantage to
assist the upmarket positioning of the portfolio.
As in 2018 in the United Kingdom, Covivio positioned itself by acquiring a
portfolio of operating properties, before selling the businesses and signing
long-term leases with its partner.
(1) 43.2% held by Covivio
(2) Excluding Nice
Covivio's investment totalled EUR573 M (capex included) for a yield target of
5.8% (including 4.7% minimum guaranteed yield).
Dublin: first hotel acquisition in the Irish market
Covivio also announces the acquisition under a management contract of a Hilton
4* hotel located in the centre of Dublin, for EUR45.5 million and a yield of
With 120 rooms, this hotel will benefit from a project to convert its meeting
rooms into ten additional rooms from now to 2021, generating a value creation
of nearly 10%.
This acquisition allows Covivio establish itself in a new European market.
Hotel assets increasingly European and centred on the large metropolitan areas
With these acquisitions, Covivio bolsters its status as European leader in the
hotels investment market, with a hotels portfolio of EUR6.9 billion held within
a total portfolio of EUR24 billion (representing respectively EUR2.7bn and
EUR16bn in Group Share(3)). Covivio is also strengthening its strategy for
upmarket positioning and geographic and operator diversification, initiated
five years ago. Over this period, Covivio has doubled its portfolio of hotel
assets, as well as the number of countries in which the group is present, while
strengthening the partnerships in place. Covivio is currently partnered with
nearly 20 hotel operators, representing about 30 brand names spread out over 12
European countries, with 76% of assets in middle and high-end establishments.
"More than one year after we entered the British market, Covivio is continuing
the European development of its hotel business by establishing itself in the
city centres of the twenty most important tourism destinations in Europe. At
the same time, we are both strengthening the quality of our assets, 85% of
which are located in the large European cities, as well as our partnerships
with leading hotel players in their segments", emphasised Dominique Ozanne,
Deputy CEO of Covivio.
Download photos of different hotels
Portfolio details (Italy, Nice, Budapest and Prague)
List of hotels by city, category and number of rooms.
Hotel Cat. Rm.
Hotel Plaza Nice 5* 152
Palazzo Naiadi Roma 5* 238
Dei Dogi Venezia 5* 64
Bellini Venezia 4* 100
Palazzo Gaddi Florence 4* 86
NY Palace Budapest 5* 185
NY Residence Budapest 5* 138
Carlo IV Prague 5* 152
(3) Data at the end of June proforma EUR620M hotel acquisitions
Breakdown of all of Covovio's hotel assets by country and operator
Rep. Tchèque 1%
Thanks to its partnering history, its real estate expertise and its European
culture, Covivio is inventing today's user experience and designing tomorrow's
A preferred real estate player at the European level, Covivio is close to its
end users, capturing their aspirations, combining work, travel, living, and
co-inventing vibrant spaces.
A benchmark in the European real estate market with 23 BnEUR in assets, Covivio
offers support to companies, hotel brands and territories in their pursuit for
attractiveness, transformation and responsible performance.
Its living, dynamic approach opens up exciting project and career prospects for
Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 -
COV) and on the MTA market (Mercato Telematico Azionario) of the Milan stock
exchange, are admitted to trading on the SRD, and are included in the
composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100
indices, in the "EPRA" and "GPR 250" benchmark European real estate indices,
EPRA BPRs Gold Awards (financial + Sustainability), CDP (A), Green Star GRESB
and in the ESG FTSE4 Good, DJSI World & Europe, Euronext Vigeo (World 120,
Eurozone 120, Europe 120 and France 20), Euronext(r) CDP Environment France EW,
Oekom, Ethibel, Sustainalytics and Gaïa ethical indices.
Covivio is rated BBB+/Stable outlook by Standard and Poor's.
Financial part: BBB+ / Stable outlook by Standard and Poor's
Extra-financial part: A1+ by Vigeo-Eiris