Investment firm Pygmalion Capital Advisers announced the first close for their European opportunistic hotel fund ("PEOH II), backed by a European Private Bank and a European Pension Fund. The fund aims to create a diversified portfolio comprising mid-to-high scale properties in business and leisure destinations, with a primary focus on Italy, the UK and Ireland.
Founder and Managing Partner Christophe Beauvilain, says: "We are excited about the early first close of PEOH II and its attractive initial investments expected to close in Q1 2021. The current market disruption caused by Covid-19 has led to what we view as the best investment period ever to invest in the European Hotel sector. Given the size of the opportunity and the need for speed of execution, we are expanding our investment team in London as well as our in-country asset management teams”.
The fund is expected to own both the real estate and, in some cases, the underlying operating business of each hotel as Pygmalion will work with operators under either leases or management contracts. Due to investor interest, a second close is expected to take place at the end of March 2021, and a final close toward the end of 2021.
Pygmalion Capital Advisers LLP is an investment firm exclusively focused on European Hotel investing. In 2018, Pygmalion and CBRE Global Investment Partners established a joint venture for the acquisition and repositioning of special situations hotel assets in Europe which already manages a portfolio of nine four-star regional city Hotels in Spain.