Internos holds €133m first close
Internos Global Investors has held a first closing for its second hotel real estate fund, raising €133 million ($150 million) from seven German institutional investors.
Internos Hotel Real Estate Fund II pursues a value-added strategy focused on city center business hotels across Europe, offering the opportunity to add value at the market and asset level via renovations, conversions, repositioning or change of tenants, among others initiatives.
Considering the targeted LTV of 50 percent, the initial equity allows the fund to acquire hotels for more than €260 million ($293 million).
Internos expects to deploy this initial capital over the next 12 to 18 months.
Similar to its Internos Hotel Real Estate Fund I, the fund manager expects committed equity to increase significantly to allow further investments so that Hotel Fund II’s assets under management should also reach approximately €500 million ($560 million) by late 2019-2020.
Internos Hotel Real Estate Fund I manages 14 hotels, and has paid out more than 8 percent cash dividends every year since 2012 and achieved an IRR of 14 percent by 2016. In addition, Internos has four hotels representing €150 million ($169 million) of assets under management in its separate account hotel value-add mandate.