Radisson Blu Hotel Complex Bucharest secures €123m refinancing

Revetas Capital and Cerberus Capital Management have refinanced the Radisson Blu Hotel Complex in Bucharest, securing a €123 mln facility from Deutsche Pfandbriefbank (pbb).

Radisson Blue Hotel Bucharest

This transaction marks the largest single-asset hotel refinancing in Romanian history.

Underwritten solely by pbb, the deal signals a return of major international lenders to the Romanian real estate sector, which has recently relied on locally-operated banks for large-scale financing.

The refinancing follows a comprehensive, multi-year repositioning of the 835-room complex, which includes both a Radisson Blu and a Park Inn. Since 2019, the property has undergone a refurbishment exceeding €30 mln, modernising facilities and achieving prestigious BREEAM In-Use "Excellent" certification. The complex has also been recognised as Romania's Leading Business Hotel by the World Travel Awards for two consecutive years.

The complex transaction, involving multiple jurisdictions and parties, was executed in under five months.

Vlad Dragoescu, partner – CEE head of Portfolio Management at Revetas Capital, stated: “This refinancing is a reflection of what the asset has become - and reaching this point took sustained commitment through some genuinely difficult years. COVID disruption, energy cost pressure, higher financing costs, geopolitical headwinds in key feeder markets: at each stage, the decision was not to pause and wait, but to keep improving the asset while the market was still facing uncertainty. And in a year when investment volumes across Romania have remained subdued, this refinancing confirms something equally important: that prime hotel assets in Bucharest are increasingly compelling to European institutional lenders.”

Wolf Theiss advised the borrower, while Kinstellar and Sentient advised pbb.