Covivio acquires four Milan hotels for €217m

Covivio, through its subsidiary Covivio Hotels, has acquired a portfolio of four 4-star hotels in Milan for a total of €217 mln, with Covivio’s share amounting to €115 mln.

Milan hotels - Covivio

This strategic acquisition strengthens Covivio's hotel sector footprint in Milan, a city with strong demand from both business and leisure travellers, and where Covivio already has a substantial office presence. This move further completes its European development strategy.

The acquired hotels have been recently renovated, ensuring high quality and modern amenities. They also boast excellent energy efficiency and low environmental impact, aiming for LEED Gold/BREEAM In-Use Very Good certification. All properties comply with the European Taxonomy and meet CRREM emission targets for 2030.

Located in well-connected areas of Milan, including Scalo Farini, Bicocca, Corso Buenos Aires, and Piazzale Loreto, the hotels collectively offer approximately 900 rooms.

The acquisition was structured as a sale and leaseback deal with Invest Hospitality, which will continue to manage the properties. Invest Hospitality is a reputable operator with a strong track record, making it a leading player in Milan's hotel market.

The 21-year lease agreements include a guaranteed minimum rent and a variable component tied to the hotels' revenues. This transaction offers a guaranteed minimum rental yield of 6%, with a target yield of approximately 7% when including the variable rent.