Tci, the fund run by British tycoon Chris Hohn, is investing over $600 million in hotels in Italia

Tci – a London-based fund owned by British billionaire Christopher Hohn – has invested around $636 million in loans linked to some of Italy’s leading luxury hotels, banking on the sector’s ability to continue raising rates thanks to strong international demand and a shortage of prime properties in the most sought-after locations. This is reported in an article by the Financial Times.
The most significant position relates to the Danieli in Venice. TCI holds a stake in a $392 million loan for the property. Next come the Caesar Augustus in Capri with $132 million, the Six Senses on Lake Como with $74 million and the Mandarin Oriental in Milan with $38 million. All the hotels are owned by the Italian property group Statuto.
TCI boasts a total portfolio of around 77 billion dollars. The fund did not grant the loans directly, but acquired shares in loans originated by a private credit company led by investor Martin Frass-Ehrfeld, in which TCI holds a stake and of which Hohn himself is a member of the investment committee.

The growth in demand for hotels in Italia has also intensified competition amongst investors for a limited number of high-profile properties, ranging from historic buildings in Rome, Milan and Venice to properties on Lake Como and the Amalfi Coast. The Danieli, for example, is undergoing a major refurbishment following the handover of management from Marriott to Four Seasons, with work due to be completed next year.

The British billionaire manages one of the world’s most profitable hedge funds, with investments in sectors including infrastructure and aerospace. However, according to a letter to investors quoted by the newspaper, a significant and little-known portion of the portfolio is dedicated to investments in property finance. The strategy of The Children’s Investment Fund (Tci), founded in London in 2003, is based on demand from affluent international travellers and the fierce competition amongst investors for a limited number of prestigious properties.

According to JLL Italy’s analysis of the latest property investment figures in Italia, in the first half of this year, the Hotels & Hospitality sector recorded around €860 million in direct investment, to which a further €260 million from conversion projects — mainly from offices to hotel properties — must be added, bringing the total to around €1.1 billion. The urban market remains particularly dynamic, accounting for around 50 per cent of the total volume, of which 30 per cent is in Milan and around 20 per cent in Rome. Interest is growing in the other two tier cities, Venice and Florence, as well as in leisure destinations, particularly the Lake District and Sicily. There is also interest in secondary cities such as Turin, Bologna and Padua.
Although the half-yearly result appears to be down on the record performance of the same period in 2025, when transactions of a rather high value were concluded, the pipeline forecast for the second half of the year suggests a year-end figure in line with previous levels in terms of volume, with several large-scale transactions already announced in the third quarter.