Business
European Hospitality Real Estate Fund
European Hospitality Real Estate Fund.
About this update from Pphe Hotel Group Limited
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n 14 March 2023\n \n \n \n \n \n \n \n \n PPHE Hotel Group Limited\n \n \n \n (\"PPHE\" or the \"Group\")\n \n \n \n \n \n \n \n PPHE confirms Clal Insurance as cornerstone investor for its European Hospitality Real Estate Fund of up to €250m equity\n \n \n \n \n PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce that it will be launching a new European Hospitality Real Estate Fund (\"the Fund\") of up to €250 million equity. The Fund, which is subject to regulatory approval, is intended to enable strategic acquisitions of hotels focusing primarily on value-add investments across Europe and will launch with an initial asset in Rome. Hotels acquired by the Fund will be operated by PPHE's hospitality operating platform.\n \n \n \n \n Further to the announcement on 2 March 2023 that it was in advanced discussions, PPHE is pleased to confirm that it has reached agreement with Clal Insurance (\"Clal\"), to participate as a cornerstone investor in the Fund. Clal has committed to invest up to €75 million (with an upper limit of 49% participation at any point in time). This builds on PPHE's existing successful partnership with Clal in relation to two key London assets.\n \n \n The Fund will enable the Group to further accelerate its strategy of identifying, acquiring and developing attractive hotel assets across a range of key European markets. This is consistent with PPHE's longstanding approach to building shareholder value through the careful stewardship of its own balance sheet and partnership with third party capital providers. Investors in the Fund will be able to benefit from and tap into PPHE's integrated owner-operator model, driving optimal operating performance through enhanced access to world recognised brands as well as an uplift in real estate value. The Fund will also further drive the growth and value of PPHE's scalable hospitality management platform, as PPHE will be appointed as the hotel management company for all hotels acquired through the Fund.\n \n \n \n \n \n In its initial form, participation in the Fund will be 51% by PPHE and 49% by Clal. In consideration for its 51% participation, PPHE will contribute the ownership of its existing Rome asset to th...