CS REF Hospitality: Montreux Palace is sold
Credit Suisse Real Estate Fund Hospitality (CS REF Hospitality) is planning to sell the Fairmont Le Montreux Palace hotel. According to Credit Suisse, negotiations are underway and the transaction is expected to close next year.
The Fairmont Le Montreux Palace has 236 rooms and suites, a 2,000-square-meter sports and wellness area, 15 function rooms, and three dining establishments. It is part of the "Leading Hotels of the World" group and is closely associated with the annual Montreux Jazz Festival.
The background to the intended sale is the repositioning of CS REF Hospitality: the hotel quota in the portfolio is to be reduced to 40 to 50 percent. In the past financial year, the fund has already sold the Hotel Monte Rosa in Zermatt and the Palace in Lucerne.
The funds from the sales will be used to reduce debt and expand the portfolio in the healthcare real estate, residences and campus/education segments, Credit Suisse says. Last year's distribution yield of CS REF Hospitality was 2.9 percent, and Credit Suisse is forecasting a ten percent higher distribution for the current year, or around 3.2 percent. As of December 31, 2015, the CS REF Hospitality portfolio consisted of 39 properties with total fund assets of approximately CHF 1.3 billion. (ah)
