Europe has bought the Cour des Loges Hotel in Lyon, France for its hotel fund.
The manager said its Hotel Real Estate Fund II fund has paid 鈧�24.5m to acquire the five-star 60-room hotel from a local real estate investor group.
Principal said as part of the transaction and its value-add strategy, it has entered into a long-term lease with the Radisson Hotel Group, and in cooperation with Radisson will renovate and reposition the hotel under the Radisson Collection brand.
Jochen Schaefer-Suren, CEO of Principal鈥檚 hotel and leisure division, said: 鈥淭he Cour des Loges in Lyon is a unique hotel and a great acquisition for our Hotelfund II and we are thankful to our operating partner Radisson, one of the leading international hotel groups with a very strong covenant, with whom we were able to sign a long-term lease agreement.
鈥淭he location, paired with the quality of the asset and the potential of the planned renovation and repositioning, is exactly the kind of value-add hotel investments Principal is looking for. As a result, we are still looking for further hotel investments for Hotelfund II in 2020 and beyond.鈥�
