PPHE Hotel Group to launch €250m European Hospitality Real Estate fund

PPHE Hotel Group is in advanced discussions with a cornerstone investor regarding the launch a new European Hospitality Real Estate fund of up to €250 million in equity.

The company, which operates hotels and resorts, said it intends to participate in the fund for an amount of up to €50 million in cash and/or assets, with the potential cornerstone investor participating for an amount up to €75 million, with a maximum of 49% participation.

PPHE noted it plans to contribute its Rome asset, which is currently undergoing refurbishment and repositioning, into the fund as a seed asset.

Following the receipt of regulatory approval, additional investors will be able to participate for the remaining €125 million equity.

What they said

Boris Ivesha, president and CEO of PPHE Hotel Group said: "This new fund would represent another significant step forward for PPHE strategically, as we continue to expand our leading portfolio of premium hotels while also taking advantage of our unique flexible and scalable in-house hospitality management platform.

"The fund would enable us to accelerate our ability to capture the attractive opportunities we see in front of us, via the use of non-dilutive third-party capital, while also playing to our strengths as a fully integrated acquiror, developer and manager of attractive city centre hotels. “