Investment fund Schroders Capital, through its pan-European fund, has completed its acquisition of the 185-room NH Collection Milan CityLife from Invesco Real Estate for an undisclosed price.
The hotel, part of Thai hotel firm Minor Hotel Group, is in Milan’s business district. Schroders said the area has “limited direct competition.”
Invesco bought the hotel in Jan. 2023 for approximately €50 million ($51.86 million) or €280,308 per key, according to CoStar data.
Invesco in 2019 signed forward-purchase deals for two hotels under development, which would become the NH hotel mentioned above plus what would become the 170-room 25Hours Hotel Piazza San Paolino Florence. Invesco's investment was approximately €160 million, according to Invesco.
The NH property has been a hotel since the 1930s, developed from a church building.
Thibaut Leonard, co-head of investment at Schroders, said the firm continues “to invest into high-quality hotels across key European markets with high barriers to entry and proven demand. This is our third hotel in Italy alongside the (231-room) Westin Palace Milan and (163-room) St. Regis, Venice, and the third asset for the Schroders Capital European Leased Hotel Fund.”
David Kellett, Invesco’s managing director, head of alternative investments, Europe, said the hotel had performed admirably for Invesco but it was the right time for the firm to sell.
“The sale … allows us to release capital for reinvestment. … The current market timing is favourable, with an established operating recovery, making it an opportune moment to invest in hotels with significant value growth potential,” he said.