Pygmalion’s second European hotel fund picks up bank, pension investors

Pygmalion Capital Advisers has completed a first close for Pygmalion European Opportunistic Hotel Fund II (PEOH II), a closed-end limited partnership domiciled in Luxembourg.

Pygmalion said the fund was backed by a European private bank and a European pension fund.

PEOH II is targeting an unleveraged equity volume of more than €400 million ($483 million). The fund will seek opportunistic European real estate hotel investments, with the aim to construct a diversified portfolio of 20 special situations investments in three-to-five-star hotels across Western Europe’s business and leisure destinations.

“The current market disruption caused by COVID-19 has led to what we view as the best investment period ever to invest in the European hotel sector,” said Christophe Beauvilain, CFA, founder and managing partner of Pygmalion. “Given the size of the opportunity and the need for speed of execution, we are expanding our investment team in London as well as our