Invesco Real Estate launches third hotel fund

Invesco Real Estate, a global real estate investment manager, has launched Invesco European Hotel Real Estate Fund III, its third real estate fund dedicated to the hotel sector.

The open-ended fund will invest in pan-European hotel properties. The fund is targeting a 6 percent through 7 percent p.a. gross income return and has an initial equity commitment of €179.5 million ($205.8 million) from 10 institutional investors.

The fund will focus on acquiring high-quality, mid-market hotels in city centers that operate as seven-day markets, catering to business travellers during the week and tourists on the weekends. It is launching with a €200 million ($229.3 million) seed portfolio of four assets in the Netherlands and Germany, which gives it an immediate footprint in excellent locations as it aims to grow the fund to €500 million ($573.5 million) in the first two years.

The fund launch is the firm’s third real estate fund to focus on hotels but is the firs