IHI to sell 72 per cent of five-star Corinthia Hotel Lisbon
IHI, which currently owns 100% of the asset, will retain a 28 oer cent interest in the joint venture
by Paul Cocks
Orion Capital Managers, through its Orion European Real Estate Fund VI, has signed the fund’s first investment by entering into a framework agreement with International Hotel Investments, owner of the Corinthia Hotels Group portfolio and brand, to acquire and own 72 per cent of the five-star 517 key Corinthia Hotel Lisbon.
IHI, which currently owns 100% of the asset, will retain a 28 oer cent interest in the JV following completion and its subsidiary Corinthia Hotels Limited will continue to manage and operate the asset.
Corinthia Hotel Lisbon, the biggest five-star hotel in the city, just underwent a complete refurbishment to upgrade its 517 keys, 3,000 sqm award-winning spa, three restaurants to equally cater for business, leisure and MICE travellers.
Rami Badr, Partner, Orion, said: "We are very pleased to build on our longstanding relationship with Corinthia by acquiring a majority stake in the landmark Corinthia Lisbon. This structured transaction on a high quality asset with proven financial performance and significant upside potential, thanks to the strength of the Lisbon hospitality market and the just completed refurbishment, is a great example of the opportunities Fund VI is pursuing in today’s market.”
Simon Naudi, Chief Executive Officer, IHI, said: “We are pleased to welcome Orion as a strategic partner and majority investor in our Lisbon hotel, in which we will continue to hold an interest and operate as a Corinthia Hotel. As owners, developers and operators of the Corinthia Hotels portfolio, we welcome this step to free up capital in support of the achievement of our goals on shareholder returns and brand growth worldwide.”
The investment marks the first deployment of capital from Orion European Real Estate Fund VI, which is targeting a final close at €1.5 billion. The acquisition reflects Orion’s conviction in investment into high-quality hospitality assets in prime European cities, as well as partnering with well-established brands, owners, and operators to realise long-term value.
