Covivio Invests 217 Million Euros in Four Milan Hotels
Covivio accelerates its expansion in the Italian hotel sector. Through its subsidiary Covivio Hotels, the real estate group has finalized the acquisition of a portfolio of four 4-star hotels in Milan for a total amount of 217 million euros, of which 115 million euros are the group's share.
Strategic Locations and High Standards
The four establishments are located in Scalo Farini, Bicocca, Corso Buenos Aires, and Piazzale Loreto, areas well served by public transport. The portfolio offers a total of approximately 900 rooms. The hotels, fully renovated, ensure high quality standards and modern facilities. The assets meet the highest ESG standards aiming for LEED Gold or BREEAM In-Use Very Good certification, and comply with the European taxonomy and CRREM's emission targets by 2030.
Leaseback Operation with Invest Hospitality
The acquisition was completed through a leaseback operation with Invest Hospitality, which will continue to operate the establishments. The leases, lasting 21 years, provide for a minimum guaranteed rent and a variable component linked to the revenue of the hotels. This structure results in a yield on the minimum guaranteed rent of 6% and a target yield, including the variable rent, of about 7%.
Enhancing Covivio’s Presence in Milan’s Hotel Market
Milan enjoys strong demand in both the business and leisure segments. This acquisition significantly strengthens Covivio's presence in the Italian hotel market, where the group already has a strong foothold in office spaces. Invest Hospitality, through its integrated platform, has built a leading reputation and a solid track record, confirming its position among the top operators in the Milan hotel market.
