Pgim RE, with Dekus and HNH, acquires the Leon d'Oro hotel in Verona

Pgim Real Estate has entered into a co-investment agreement with Dekus and HNH Hospitality for the Hotel Leon d'Oro in Verona. Located in the centre of Verona, it has been acquired by a company owned by an Italian family and will undergo a complete refurbishment, including the renovation of the common areas, refurbishment of the rooms and improvement of the mechanical and electrical systems, with interventions aimed at enhancing the structure's ESG profile.

This is the second investment for Pgim Real Estate and Dekus as part of the joint venture launched less than a year ago. Pgim Real Estate provided the capital for the transaction on behalf of its European value-add strategy, while Savills IM acquired the asset on behalf of the joint venture. HNH will act as minority shareholder, manager and lessee of the Hotel Leon d'Oro, which will be rebranded as DoubleTree by Hilton. The partnership with HNH will identify additional opportunities in major Italian cities and tourist destinations, transforming privately owned hotels into branded and refurbished facilities.

Pgim Real Estate's European value-add strategy continues to exploit high-potential markets, focusing on repositioning assets to increase their value and capitalising on growing demand in the travel and tourism sector in strategic locations.

"The reset in real estate values over the past three years has highlighted certain sectors as winning investment opportunities, and the hotel sector in Italy is one of them," said Musie Bocrezian, head of Italy at Pgim Real Estate. The performance of hotels in Italy is solid, supported by robust market fundamentals and increasing tourism. Thanks to strategic acquisitions and active asset management through our European value-add strategy, we remain optimistic about the hotel sector in Southern Europe and look forward to working with HNH and Dekus on the Hotel Leon d'Oro.

"Verona is a dynamic market, characterised by solid fundamentals and a growing interest in the hospitality sector," added Mauro Montagner, CEO of Dekus. "This acquisition reflects our strategic vision focused on the valorisation of assets in prime locations through real estate redevelopment initiatives combined with high-level industrial partnerships such as the one with HNH. The transaction further strengthens our partnership with Pgim Real Estate, with whom we share an approach defined by value creation. We remain committed to pursuing an operating model based on quality, sustainability and strong value generation'.