Netherlands: Avignon Capital, a European property investment and asset management firm, has acquired Staybridge Suites The Hague-Parliament for €16.2 million.
The newly converted 101-key property opened in November 2018 and is the first Staybridge Suites property in the Netherlands. The 4,766 square metre building is located on Lange Vijverberg, opposite the Houses of Parliament in the historic centre of The Hague’s CBD.
Bianca Tristao, investment manager at Avignon Capital, said: “This off-market acquisition is attractive to our investors as it provides secure long-term income, with a long unexpired term and annual CPI linked rent reviews. Staybridge Suites is a well-recognised global brand and there is the opportunity to capture robust growth from hotel demand in The Hague in the long term. We are seeing investors turning their attention to cities such as The Hague and Rotterdam as Amsterdam continues to experience limited supply and rising prices. The Hague showed the most significant tourism growth of the three largest cities in the Netherlands with 7.7 per cent growth in overnight stays in 2016.”
“The extended stay sector, seen as a niche alternative within the more established and traditional hotel offering, is attracting attention from investors looking to diversify and achieve attractive risk-adjusted returns, which can be achieved due to the high-profit margin and low operational overhead costs of the sector. The Netherlands remains a core focus for Avignon Capital with this latest acquisition marking Avignon’s 6th acquisition in the Netherlands, she added.
Haagstate Advocaten and ARC Real Estate Partners acted for Avignon Capital. DLA Piper and PwC acted for the vendor.
