Invesco closes second Euro hotel fund

The real estate subsidiary of the global asset manager has raised €200 million for its European Hotel Fund II, which will have €400 million of buying power.

Invesco Real Estate has completed capital-raising for its second European hotel fund. A statement from the real estate subsidiary of global asset manager Invesco reveals that the fund has closed on €200 million in equity commitments. 

With leverage, Invesco European Hotel Fund II gives Invesco Real Estate some €400 million in buying power. At the end of February, the firm owned eight assets in Austria, Germany and the Netherlands – valued at €280 million – on behalf of Fund II. 

Marc Socker, senior director of hotel fund management at Invesco Real Estate, said in a statement that the firm currently is “looking for additional investment opportunities in the sector” now that the fund is closed.  

Upon the launch of Fund II, Simon Redman, a managing director at Invesco Real Estate, said: “Hotels are part of a strategic growth sector, providing a stable income product underpinned by strong covenants and rental guarantees.” 

Fund II held a first close of €85 million in March 2011. Invesco Real Estate’s first European Hotel Fund raised some €350 million of equity in September 2006 and is fully invested.

Invesco Real Estate’s hotel sector funds have a combined €920 million in assets under management, representing 25 properties across the UK and Europe. Future investments into the hotel sector are planned on behalf of the second fund and new separate account clients, and the firm currently has a team of eight focused on such investments.