PPHE Hotel Group in talks with cornerstone investor for €250m hospitality real estate fund

PPHE Hotel Group, an international hospitality real estate group that develops, owns and operates hotels and resorts, is in advanced talks with a potential cornerstone investor regarding the launch of a new European Hospitality Real Estate Fund of up to €250 million ($267 million) in equity.

PPHE plans to launch the fund with up to €50 million ($53 million) in cash and/or assets, and an equity commitment of up to €75 million ($80 million) from a cornerstone investor. Additional investors would be able to participate for the remaining €125 million ($134 million) equity.

The company’s existing Rome asset, which is currently undergoing refurbishment and repositioning ahead of its opening as Italy’s first Art’otel branded asset, will be a seed asset in the fund. This hotel will be managed by the group under its hospitality management platform.

The European Hospitality Real Estate Fund would enable PPHE to further accelerate its strategy of identifying,