Covivio Expands in Milan's Hotel Sector with €217 Million Acquisition

Covivio, a key player in the European real estate market, has acquired four 4-star hotels in Milan for €217 million. This strategic move, executed by its subsidiary Covivio Hotels, aims to strengthen the company’s presence in Southern Europe, specifically in Milan, Italy. The city remains a prominent market for both business and leisure tourism.

The acquired portfolio boasts modern amenities and high environmental standards, with the properties set to achieve LEED Gold and BREEAM Very Good certifications. These hotels are situated in well-connected areas with a total of approximately 900 rooms. The transaction, a sale and leaseback agreement with Invest Hospitality, secures a 21-year lease with a guaranteed 6% yield and potential for 7% with variable rent. This acquisition aligns with Covivio’s broader European expansion and sustainability goals.