Echo Partners buys Radisson Blue in Vienna
Hotel real estate investor Echo Partners has acquired the Radisson Blu Park Royal Palace Hotel in Vienna for its new hotel fund.
Pfäffikon-based Echo Partners has invested in Vienna for the first time. The acquisition was made through the newly established Luxembourg hotel fund Echo Fund SCSp - according to Echo Partners, this is the first deal within a few months after the fund was established.
The new fund property is the four-star Radisson Blu Park Royal Palace Hotel with 233 rooms, including 21 suites. The hotel is located in Vienna's 14th district and offers a direct view of Schönbrunn Palace, one of the most famous sights in Vienna. The lessee is Austria Trend Hotels. The purchase price was 66 MM euros, according to Echo Partners. According to the investment company, the development of a further 14 hotel rooms has been agreed.
According to Vitus Eckert, founding partner of Echo Partners, two further acquisitions are planned for the hotel fund in the near future. Hotel properties in continental European tourist cities such as Vienna, Amsterdam or Budapest will be acquired. Echo says it is focusing on a purchase value in the range of 10 to 70 million euros and a target purchase yield of over 5%. (ah)
