ECHO acquires first hotel for EUR 66MM in Vienna
Pfäffikon, 19 July 2019 - ECHO Partners AG („ECHO Partners“) announced today the acquisition of its first hotel in Vienna. The hotel was acquired through the newly founded Luxembourg hotel fund ECHO Fund SCSp ("ECHO"). ECHO acquired the Radisson Blu Park Royal Palace Hotel in Vienna, Austria. The Radisson Blu Park Royal Palace Hotel is a four-star superior hotel located in vicinity to the Schönbrunn Palace, a major sight in Austria, and is located next to the Vienna Technical Museum.
Acquisition in line with ECHO‘s acquisition requirements
The first closing within the first months of inauguration of the ECHO fund during the second quarter of 2019 underlines the fast execution and sourcing capabilities of ECHO Partners as well as the ability to increase value in hotels in major cities such as Vienna, Amsterdam, Budapest or Prague. The asset has a purchase price of EUR 66MM with Austrian Trend Hotels as AAA-tenant. The Hotel offers a total of 233 rooms including 21 suites.
The hotel is excellently located in the 14th District of Vienna and has a direct view onto Schönbrunn Palace, a major sight in Vienna. A zoo is also in the park of the palace park. The location has great access to public transportation and is only a short ride away from the Vienna city centre.
The asset holds significant potential for further upside via proactive asset management, which has already been identified by ECHO. At purchase the expansion of 14 additional hotel rooms was concurrently agreed leading to both increased value of the asset and revenues for the operator.
Vitus Eckert, Founding Partner of ECHO states: „With our first acquisition after founding our first ECHO fund we have proven our strong sourcing and asset management capabilities. We expect to acquire another two hotels shortly, which will be in line with our acquisition criteria.”
Michael Regner, Founding Partner of ECHO adds: “The property offers very attractive conditions to our investors with considerable value increase in the future. As a first step we have already implemented the start of a value-added extension of 14 rooms.“
ECHO Partners AG
About ECHO Partners AG
ECHO Partners AG (“ECHO”), based in Pfäffikon, Switzerland, invests in hotels, which are located in leading Continental European tourist destinations, such as Vienna, Amsterdam or Budapest and relies on long-term tourism trends. We are identifying and purchasing hotels with a purchase price in the EUR 10-70MM range and a target acquisition yield at or above 5%. The ECHO Fund is the first investment fund of ECHO Partners to implement this strategy.