Principal Real Estate hotel fund buys hotel in Barcelona

Principal Hotel Real Estate Fund II (Hotelfund II), a fund managed by Principal Real Estate Europe, has acquired Ona Hotel Terra in Barcelona for €40.50 million ($44.56 million) from a family owned Spanish hotel group.

The three-star hotel has 152 rooms, a restaurant, a bar, two meeting rooms as well as a rooftop terrace with swimming pool.

This acquisition reflects the value-add strategy of Hotelfund II to focus on strategically located, high-quality three-star to five-star hotels in major cities across Europe with significant potential to increase value.

Jochen Schaefer-Suren, CEO of Principal’s hotel and leisure division, commented, “The Ona Hotel Terra in Barcelona is an exciting investment for our Hotelfund II as it is a very attractive value-add opportunity in particular as the hotel development moratorium in Barcelona should constrain supply and provide a unique opportunity to benefit from future demand growth to all existing hotels including our ne