This transaction was carried out on behalf of one of its pan-European hotel funds, marking a new step in its targeted investment strategy focused on premium assets while reinforcing its expansion in the European hotel market.
The operation is part of a divestment orchestrated by Invesco Real Estate, a key player in real estate investment, which capitalized on the strong performance of the hotel since its opening in 2022. Invesco’s objective is to reallocate the freed-up capital into new strategic investment opportunities.
This is the third hotel in Italy, alongside the Westin Milan and the St Regis Venice, as well as the third asset of the Schroders Capital European Leased Hotel Fund, which focuses on leases indexed to the hotel’s operational performance.
A hotel in a developing district
Located in the CityLife business district of Milan, NH Collection Milan CityLife features a distinctive architectural setting, developed around a former church from the 1930s. This four-star establishment, operated by NH Hotels Group, offers 185 rooms and caters to a diverse clientele, including both business travelers and tourists.
The hotel’s location and the relatively limited competition in the area make it an attractive asset for Schroders Capital, which continues to expand its hotel portfolio in key European cities.
A rapidly growing hotel platform
Schroders Capital currently manages €3.6 billion in hotel investments through a specialized team of 40 experts based in Paris, London, and Amsterdam. Its portfolio includes a wide range of assets, from independent hotels operated directly or under affiliation to establishments under management or lease agreements with third-party operators. Among its assets are the Hoxton Paris, Hoxton Amsterdam, Standard Ibiza, and Grand Hotel Central Barcelona.
Invesco Real Estate: a dynamic asset management strategy
With 18 years of experience in the hotel market, Invesco Real Estate manages a diversified pan-European portfolio, comprising 53 hotel investments across 11 countries and 31 different brands. Its approach is based on active asset management and collaboration with strategic partners to maximize long-term value.
The sale of NH Collection Milan CityLife aligns with this strategy, allowing Invesco to capitalize on a profitable transaction and reposition its investments into other high-potential projects.
A favorable market for transactions
The European hotel sector is currently benefiting from strong fundamentals, with rising demand and limited supply. The market rebound has led to an increase in transaction volumes, creating a favorable environment for investors.
Since Invesco’s initial acquisition of NH Collection Milan CityLife, the Milanese market has shown remarkable growth, allowing the hotel to exceed its initial business plan by nearly 15%.
“We continue to invest into high-quality hotels across key European markets with high barriers to entry and proven demand.” – Thibaut Leonard, Schroders Capital, Co-Head of Investments, Hotels
“The NH Collection Citylife Milan has been an excellent performer for Invesco Real Estate. The sale, which capitalises on the strong performance delivered by the hotel since its completion in 2022, allows us to release capital for reinvestment. This profitable transaction will enable us to re-invest the proceeds in new deals and develop our well-regarded pan-European hotel portfolio. 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.” – David Kellett, Managing Director, Head of Alternative Investments, Europe at Invesco Real Estate
