Covivio acquires four 4-star hotels in Milan for €217 million

Covivio accelerates its expansion in the hôtellerie sector. Through its subsidiary Covivio Hotels, the French real estate group led in Italia by Alexei Dal Pastro has announced the acquisition of an important portfolio of four four-star hotels in Milan, for a total value of EUR 217 million, of which EUR 115 million is attributable to the group's share.

The transaction further consolidates Covivio's presence in the hotel sector in Italia, with a particular focus on the Milan market, which is supported by solid demand in both the business and leisure segments. In a city where the group already boasts a significant presence in the office segment, the acquisition contributes to strengthening and completing its development at a European level.

The hotels, with a total of approximately 900 rooms, are located in several strategic areas of the city: Scalo Farini, Bicocca, Porta Venezia and Piazzale Loreto, all well connected by public transport. The acquisition was completed through a sale and leaseback transaction with Invest Hospitality, the leading hotel operator in Milan with average room occupancy rates of between 90% and 97% from 2022, which will continue to manage the facilities.

The leases, with a term of 21 years, provide for a guaranteed minimum rent flanked by a variable component linked to hotel revenues. The deal ensures a minimum return of 6%, with an overall target, including the variable part, of around 7%.

The recently renovated portfolio guarantees high quality standards and modern services. The properties will also be characterised by high energy performance and a reduced environmental impact: the ongoing redevelopment process aims at achieving the highest sustainability certifications.