German fund manager Commerz Real has acquired a hotel complex in Lisbon, managed under the DoubleTree by Hilton brand, for its Commerz Real institutional hotel fund from Portuguese project developer Turismadeira.
Financial details were not disclosed.
Located on Rua Engenheiro Vieira da Silva in the city's central business district, the ensemble comprises the four-star hotel DoubleTree by Hilton Lisbon, Fontana Park, which as a building was erected in 1910 and modernised into a hotel in 2008, and an extension currently under construction.
'Lisbon has established itself as one of the leading tourism destinations in Europe,' said Dirk Schuldes, global head of hospitality at Commerz Real. 'At the same time, the hotel market profits from an increasing amount of business travellers as a result of numerous international trade fairs in the capital.'
The existing seven-storey hotel has 146 rooms and 62 car parking spaces, as well as conference areas, two restaurants, a bar and a fitness zone. Following its anticipated completion in 2020 the extension will comprise 80 suites, 40 car parking spaces and a new large conference hall.
Commerz Real has concluded a triple-net leasing agreement for a period of 20 years with Fontana Hotels, which is operating the hotel with Hilton as the manager. This means that the lessee is responsible for the maintenance of the entire property.
The transaction marks the fourth deal for the Commerz Real Institutional Hotel Fund. The fund is assembling a diversified portfolio of business hotels in the three-to four-star category in international cities with a target volume of around €2 bn.