Portugal: The Diplomatico Hotel in Rua Castilho has been acquired by Catalyst Capital which Staycity will operate under its Wilde Aparthotels brand.
Catalyst Capital as purchased the 95-room hotel from a family office for €14.75 million. The acquisition marks Catalyst’s first purchase as part of its €250 million European hotel investment strategy, on behalf of its Catalyst Core Plus European Property Fund.
Around €9 million is to be invested in the refurbishment of the property. Work is expected to begin next year and scheduled to complete in 2023.
Staycity has signed a 25-year lease for when the project is finished, inclusive of annual, inflation-linked rent uplifts. It is to be operated under Staycity’s Wilde Aparthotels brand.
Kean Hird, partner of Catalyst Capital, said: “We believe there is a compelling opportunity to deliver a series of tourist hotels in European capital city centres as demand rebounds and performance recovers, with a full recovery in hotel demand expected to return across Europe by 2023. Diversification in the fund’s assets across different sectors, asset classes and geographies has served us well during Covid. Global travel was temporarily interrupted by the pandemic, and Europe is the global leader in international tourism. Leisure-led domestic and international travel is laying the foundation for recovery across Europe, as the preference for leisure experiences increases post-Covid.”
