Starwood Capital sells Sofitel Budapest to Indotek

Main Photo: The Sofitel Budapest

Date: December 2019

Location: Budapest, Hungary

Name: The Sofitel Budapest

No. of Keys: 360

Seller: The last change of ownership took place in 2017 when Starwood Capital Group acquired the hotel from Accor for a total of €75 million.

Buyer: Hungarian real estate investment firm Indotek Group, owned by local high-net-worth entrepreneur Daniel Jellinek, has been reported to be acquiring the Sofitel Budapest from US private equity group Starwood Capital for a reported price of €100 million.

The 360-room hotel, operated by Accor under a long-term management agreement, is planned to undergo a substantial renovation, which the new owners will carry out by 2022.

The transaction still requires the approval of the Hungarian Competition Authority.

This won’t be the first landmark Budapest hotel in Indotek’s portfolio. The investor purchased the historic Gellért hotel on the other side of the Danube in June 2019 from Danubius Hotels Group.

The Indotek Group is a group of investment management companies owned by American and Hungarian shareholders. Their portfolio is diversified geographically and functionally. It includes retail, hotel, industrial, office, residential and warehouse properties, as well as land development, in both Budapest and the rest of Hungary.

Price: €100m

Price per Key: €277,778

THPT Comment: Interesting new entrant into the Hungarian hotel scene, with these two prestigious hotels in Budapest.

First Seen: Property Forum.eu

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