Real estate investment firm Catalyst Capital has bought the former Diplomatico Hotel in Lisbon from a family office for €14.75 million on behalf of its Catalyst Core Plus European Property Fund (CCPEPF).
The London-based company will invest around €9 million to refurbish the property, creating a 95-room, 4-star boutique hotel. The hotel will be operated by Staycity, the aparthotel operator, under its premium Wilde Aparthotels.
The company has signed a 25-year lease with annual, inflation-linked rent uplifts. Catalyst expects to begin the refurbishment next year and complete it in 2023.
The deal is part of Catalyst’s new €250 million hotel investment programme, which will target properties in gateway European cities with high barriers to entry and limited competitive supply, which can be transformed into 4 and 5-star tourist hotels with pre-lets to established operators or management contracts.