Pygmalion’s Second European Hotel Fund Closes With Bank and Pension Investors

Main Photo: The Silken Amara Plaza Hotel, San Sebastian

Date: February 2021

Location: Luxembourg

Name: The Pygmalion European Opportunistic Fund II

No. of Keys: TBA

Who: Pygmalion Capital Advisers LLP… an investment firm, primarily focused on hotel investing. The Pygmalion team offers a combination of core, opportunistic and special situations/turnaround hotel investing expertise, hospitality asset management experience and extensive direct local market relationships in Europe. The firm deploys significant institutional capital to acquire primarily hotel assets and businesses as well operating platforms with significant expansion potential.

The London and Barcelona‐based team includes experienced professionals combining years of experience sourcing and structuring hotel investment transactions across major European jurisdictions.

What: They have completed a first close for Pygmalion European Opportunistic Hotel Fund II (PEOH II), a closed-end limited partnership domiciled in Luxembourg.

Pygmalion said the fund was backed by a European private bank and a European pension fund.

PEOH II is targeting an unleveraged equity volume of more than €400 million. The fund will seek opportunistic European real estate hotel investments, with the aim to construct a diversified portfolio of 20 special situations investments in three-to-five-star hotels across Western Europe’s business and leisure destinations.

“The current market disruption caused by COVID-19 has led to what we view as the best investment period ever to invest in the European hotel sector,” said Christophe Beauvilain, CFA, founder and managing partner of Pygmalion. “Given the size of the opportunity and the need for speed of execution, we are expanding our investment team in London as well as our in-country asset management teams.”

According to Pygmalion, capital gathered in the fund’s first close has already been earmarked for the acquisition of seed assets in Italy, the United Kingdom and Ireland.

Back in November 2018 Pygmalion partnered with CBRE Global Investment Partners
acquired a portfolio of nine four-star regional city Hotels in Spain, previously owned by the Urvasco construction group. The portfolio included 1,650 hotel rooms which are located in Seville, Madrid, Bilbao, San Sebastian, Santander, Tenerife, Valladolid and Ciudad Real. Silken Hotels were given the management contract. 

THPT Comment: Good to see another fund close…Pygmalion clearly have the experience to see this one through.

First Seen: IREI

The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.

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