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Hotel
With gearing, the new fund will initially have around €260m to invest in value-add hotels in three-and-four star business hotels across Europe.
Pan-European fund manager Internos Global Investors has raised €133m for its second hotel fund, Hotel Fund II. In the first closing, it raised equity from seven German institutional investors all of whom, bar one, had invested in the group’s first hotel fund, which now has €500m of AUM.
‘Hotel Fund II provides investors with access to value-add opportunities at a point in the cycle where many hotels with long-term fixed income are fully valued in many markets, yet may face rising interest rates and resulting potential value impact over coming years,’ said Jochen Schaefer-Suren, managing partner of Internos’ Hotel and Leisure division. ‘In such markets, the new strategy focuses on creating value at the individual asset and market level, which can be achieved in any general market context,’ he added.
With gearing, the new fund will initially have around €260m to invest in value-add hotels in three-and-four star business hotels across Europe. Interns is hoping to deploy the capital raised within the next 12 to 18 months and already has several hotels under exclusivity or in advance discussions, it said. Internos intends to grow the fund to €500m by 2020, to match its first hotel fund.
The group manages 14 hotels across its first hotel fund, which has paid out over 8% in cash dividends every year since 2012, achieving an IRR of 14% by 2016. It also holds four hotels representing €150m of AUM in its separate account.
