Investment fund CapMan Hotels II, a division of CapMan Real Estate, has acquired a portfolio of 28 hotels with 4,709 rooms from Norwegian firm Midstar Fastigheter AB, part of Stockholm-based Midstar Hotels AB.
In a news release, the Helsinki-based firm said the “transaction significantly contributes to CapMan’s long-term objective to grow the company’s assets under management within real assets.” CBRE acted as CapMan's commercial advisor on the transaction.
The deal grows CapMan's assets under management by €400 million ($417.3 million), moving it toward its goal of having €10 billion in assets under management during the ongoing strategy period. CapMan also plans to expand its portfolio room count to 4,887 by 2027.
Business advisory JLL, which advised the former management company, Midstar AB, and its associated investors, Alecta, Kåpan, PRI, Riksbankens and Jubileumsfond, said in a separate news release the deal “represents the largest hotel deal in Nordic history and one of Europe’s most significant in recent years.”
“This transaction signals a significant shift in market sentiment, with Nordic hotel properties regaining strong investor appeal. The cumulative bid value approaching €8 billion underscores the intense interest in this portfolio," said Thomas Persson, JLL’s head of capital markets, Nordics.
The hotels are all in Scandinavia: 16 in Sweden; eight in Norway; and four in Denmark. The markets span primary, secondary and tertiary markets, including Gothenburg, Sweden, and the three capital cities of Stockholm, Oslo and Copenhagen.
The hotels' brands are a mixture of Best Western, Elite, Scandic and Strawberry.
“We see significant potential in this platform and are confident in its ability to deliver strong returns, driven by the continued growth of the Nordic hotel market,” said Mika Matikainen, managing partner of CapMan Real Estate, in the news release.
Will Duffey, JLL’s head of Europe, Middle East and Africa hotels and hospitality capital markets, said: “The Nordic region presents compelling investment opportunities, underpinned by strong trading fundamentals.”
Midstar’s website states that it has 4,702 rooms and 28 hotels, which means that its sale of the portfolio also is an exit from hotel ownership, at least for the time being.