In Portugal’s Biggest Deal, Invesco Pays €313m for Lisbon Hotels from Thailand’s MINT

Main Photo: The Tivoli Avenida Liberdade Lisboa – bedroom

Date: June 2019

Location: Lisbon, Portugal

Names: Tivoli Avenida Liberdade Lisboa, five-star and a member of LHW; Tivoli Oriente Lisboa, four-star and AVANI Avenida Liberdade Lisbon, four-star.

No. of Keys: 648

Seller: NH Hotels, part of Minor Hotels of Thailand – MINT

Buyer: US-based Invesco Real Estate has purchased three hotels in Lisbon, Portugal for €313m, the largest-ever such transaction in the nation.

The acquisition, for pooled and separate account mandates, “marks the largest ever hotel real estate transaction in Portugal and is testament to Invesco’s ability to deliver on its institutional investors’ objectives while investing in best-in-class assets in attractive markets in Europe,” the firm said. The deals add an additional country to Invesco’s growing pan-European hotel portfolio, bringing this to 25 investments in eight countries, managing over €1.5bn of assets.

The hotels are under brands from IHG, Marriott, Accor and include the Crowne Plaza Amsterdam, Sheraton Grand Krakow and Holiday Inn Express Berlin.

The hotels were acquired from Minor International (MINT) and will be operated by its subsidiary NH Hotels, with which Invesco has a long-standing relationship.

The hotels are located in excellent micro locations, Invesco said. The city has experienced strong demand growth, particularly from international travellers, which is expected to continue with improving infrastructure and the upcoming development of a new airport.

David Kellett, Senior Director Hotel Transactions at Invesco Real Estate, commented: “Lisbon is a market with strong growth fundamentals, which we have been monitoring for some time. Our patience has been rewarded with access to this attractive investment opportunity of three high profile and high-quality hotels in strong micro locations.”

He added that the transaction is the first with MINT, with which Invesco looks forward to a collaborative and increased partnership over the coming years. “The hybrid lease agreement we have put in place means we will deliver a sustainable fixed rent with the ability to benefit from performance upside through a variable rent, providing attractive returns for our investors.”

Separately, MINT added that its selling price implied an accretive net disposal EV/EBITDA of around 19x and a net gain of €62m in 2019. Following completion of the sales, its NH unit will operate the assets under lease agreements for an initial term of 20 years with options to extend.

Thailand-based MINT completed its takeover of the formerly Chinese-owned NH Hotel Group only last November. CEO Dillip Rajakarier said at the time that the acquisition was, “a true game-changer for both MINT and NH Hotel Group.”

The NH purchase took MINT’s global platform of hotels to 549.

MINT is a global company focused on three core businesses: restaurants, hospitality and lifestyle brand distribution. As well as a hotel owner operator and investor, it is one of Asia”s largest restaurant companies with over 2,000 outlets operating system-wide in 19 countries, and one of Thailand”s largest distributors of lifestyle brands focusing primarily on fashion, home and kitchenware and contract manufacturing.

In the Portugal hotel transaction, Invesco Real Estate was advised by Taylor Wessing, Cuatrecasas, PwC, JLL, Avison Young, B.Prime and CBRE.

Price: €313m

Price per Key: €483,025

THPT Comment: We know Minor Hotels – MINT, as a buyer not a seller, but they get the three hotels to manage. Integration looking good on their marketing materials, such as the websites.

First Seen: Business Immo

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