Catalyst acquires prime Lisbon property for new €250m European hotel strategy

Catalyst Capital, a European real estate investment, development and fund management firm, has kicked off a new €250 million ($295 million) European hotel investment strategy with the acquisition of a prime property in Lisbon.

Catalyst has acquired the former Diplomático Hotel in Rua Castilho in the city center of Lisbon from a family office for €14.75 million ($17.4 million) for its Catalyst Core Plus European Property Fund (CCPEPF), a €1.3 billion ($1.5 billion) evergreen real estate fund.

Catalyst will invest around €9 million ($10.6 million) in a comprehensive refurbishment of the property to provide a 95-room, four-star boutique hotel. The hotel will be operated by Staycity, the aparthotel operator, under its premium Wilde Aparthotels. The company has signed a 25-year lease with annual, inflation-linked rent uplifts. Catalyst expects to begin the refurbishment next year and complete it in 2023.

Catalyst’s new hotel investment program will target