Limestone Capital has acquired the Hotel U Palazzu Serenu, a boutique luxury hotel in Corsica.
The investment comes two months after the announcement of Limestone Capital’s Amethyst Fund launch in September 2020 and represents the fourth hotel acquisition for Amethyst Fund.
As part of the deal, Limestone will make what it describes as “thoughtful” capex investment, integrate technology to increase distribution and reduce cost, and reposition the property for an audience" seeking unspoiled nature and authentic travel experiences at a premium price point”.
The deal forms part of Limestone’s wider investment approach. In partnership with leading family offices across the world, Limestone expects to continue to invest in underperforming hotels across a number of European destinations and utilise its integrated asset management approach to create value. The company said that, despite the overall hotel sector facing major challenges throughout the Covid-19 pandemic, boutique hotels offered the strongest opportunities in the luxury hospitality sector “to outperform larger, generically branded and antiquated competitors.”
This acquisition builds on previous investments in Italy and Portugal. Limestone’s data-driven research, together with qualitative network-driven research, foresees a strong recovery in boutique properties in the European Union as certain segments of tourists return to travel and spend over-proportionally to the rest of the industry.
Benjamin Habbel, managing partner, Limestone Capital said : “We continue to see excellent opportunities in the boutique hotel sector across Europe with double digit return potential. With recent major steps towards the full reopening of the international hospitality sector, we are confident that recovery following Covid-19 will be swift for premium assets in sought-after destinations.
“U Palazzu Serenu is an exceptional opportunity with the potential to deliver strong yields. It will benefit from centralised revenue management, tech-driven distribution and services, and experienced management. It helps that Corsica is one of the few undiscovered gems of Europe. We expect strong growth from arrivals from Northern Europe, Germany, and the US.”