Lender Aareal Bank has loaned investment company Cedar Capital Partners approximately €200M to acquire five lifestyle hotels under the Hoxton and Mama Shelter brands.
The properties are located across European cities including Amsterdam, Edinburgh, Florence, Prague and Rome. Three of the five assets – Hoxton Rome, Hoxton Amsterdam Loyd and Mama Shelter Prague – have undergone renovations in recent years. The total number of rooms has expanded to 566 units and Hoxton Rome and Mama Shelter Prague qualify as green properties.
The remaining two hotels are scheduled to open this year. All five hotels are managed by Ennismore which has more than 160 hotels in operation and more than 100 in the pipeline.
Michelle Weiss, Head of Hotel Properties at Aareal Bank, said: “We are delighted to provide financing for Cedar Capital to advance this portfolio of lifestyle hotels across Europe through its next growth stage. The sector is highly demanding and the success of an investment depends not only on the location and quality of the property but also on the selection of the right operator, the right brand positioning and a good interaction between owner and operator. We consider all these aspects to be well fulfilled in this portfolio.”
Ramsey Mankarious, CEO and Founder at Cedar Capital Partners said: “For more than 20 years, we have built a strong and long-standing relationship with the Aareal Bank team. Once again, we were impressed by their collaboration and expertise. Their deep hospitality knowledge and nuanced understanding of the mechanics of managed properties make their commercial lending capabilities truly unique.”
