Netherlands-based property company Redevco will reposition its first six European hotel purchases, with sites in Spain and Portugal.
The company acquired the sextuplet for more than 80 million euros to launch its joint venture (JV) platform “Next Gen Stays”.
Investments in Lisbon, Bilbao, Seville, Porto and Malaga aim to capitalize on the post-pandemic resurgence and growth of the tourism and youth experience market and bring together a professionally managed portfolio in a rapidly changing sector and expanding.
Next Gen Stays aligns with Redevco’s strategic direction of creating vibrant places in dynamic urban areas, helping cities become more livable and sustainable.
The Next Gen Stays investment strategy targets a net internal rate of return of more than 15% over a five-year period. Redevco acquires strategically located underutilized real estate with local character and redevelopment potential.
The assets are pre-let to a professional operator at the time of acquisition, and will be redeveloped to create authentic, sustainable and value for money accommodation. The intention is to initially build a €250 million portfolio in the Iberian markets with a like-minded JV partner, before developing into a pan-European hotel vehicle with a target investment volume of €500-700 million. euros.
The strategy also targets the strong sustainability and social returns that can be achieved by repurposing architecturally interesting but obsolete buildings and improving their environmental footprint. The completed refurbished hotels will be consistent with Redevco’s mission to make its entire real estate portfolio net carbon neutral by 2040.
Israel Casanova, MD for Global Transaction Management at Redevco, said, “Combining Redevco’s strong real estate investment track record in retail and urban regeneration with best-in-class hotel operators, our Next Gen strategy Stays plays on the latest travel and consumer trends to come. .
“The vast online “sharing economy” marketplace that Airbnb has identified and opened up is now professionalizing in a more community-based way. Our Next Gen Stays hotels form a distinct market sub-segment to target younger, tech-savvy and sustainable travelers who are increasingly looking for authentic, high-quality yet affordable experiences.
Previous large-scale transformation projects for Redevco include: Mercado San Miguel, the second most visited tourist destination in Madrid, Spain; One Tower Bridge, a dining and leisure hotspot in central London, UK; and the redevelopment of a former C&A store in Hamburg, Germany into a net-zero carbon retail, hotel and F&B flagship building.
In addition, the German subsidiary of the real estate company is developing a dual-brand hotel site in Hamburg. Hyatt Centric Monckebergstraße will be a 185-key boutique hotel and will be combined with the extended stay concept Stay Kooook Monckebergstraße, offering an additional 85 rooms. The eight-story building is expected to be completed in the first quarter of 2025.