Morgan Stanley Real Estate is acquiring ten European Hilton hotels for €566 million ($781 million). The firm has completed the acquisition of eight of the properties and plans on acquiring two more by the end of September.
The eight hotels acquired by the bank are located throughout Europe: the Hilton Dresden, Hilton Dusseldorf, Hilton Weimar, Hilton Charles de Gaulle, Hilton Strasbourg, Hilton Luxembourg and Hilton Barcelona, as well as the Los Zocos Club Resort in the Canary Islands.
The firm plans to acquire the Hilton Brussels and Hilton Zurich by the end of this quarter. The properties will continue to be managed by Hilton, according to the firm.
“We have grown our lodging platform significantly during the last year and this transaction is key to that growth,” Marco Polenta, managing director at Morgan Stanley and head of the firm’s European real estate investing team, said in a statement. He added that, with the addition of the ten European hotels, Morgan Stanley’s global lodging platform now consists of more than 100 properties.
In June, Morgan Stanley closed on $8 billion for a new international property vehicle targeting assets, portfolios and property companies in Western Europe, Japan and Australia, as well as emerging markets like China, India, Russia, Turkey and Latin America.
In 2006, the firm raised more than $8 billion in three separate opportunity funds: a $1.8 billion US-focused vehicle, a $2.2 billion special situations fund and $4.2 billion for MSREF V International.