The world’s largest real estate investor, Blackstone, has deployed over half a billion euros into southern European hospitality assets during the past year, capitalising on the flourishing post-pandemic travel sector. The investment giant’s latest acquisition, the Grand Hyatt Athens, was secured for €235 million from Henderson Park and Hines.
This strategic move brings Blackstone’s total hotel investments across Greece, Spain, Italy, and Portugal to €500 million within the previous twelve months. James Seppala, Blackstone’s European real estate head, emphasised the region’s growing appeal, citing increased visitor numbers and extended summer seasons as key drivers for long-term investment potential.
The European hotel sector is experiencing significant momentum, with Deloitte research indicating 54 per cent of businesses planning additional acquisitions. Southern European markets, particularly Spain and Portugal, present compelling opportunities due to their relatively low penetration by global hotel brands compared to other European regions.
Through Hotel Investment Partners (HIP), acquired in 2017, Blackstone has built an impressive portfolio comprising 22,000 hotel rooms across more than 70 properties in southern Europe, including 10 establishments in Greece. HIP’s strategy involves purchasing properties, often from family owners, renovating them, and securing partnerships with prestigious operators like Ritz-Carlton, Hilton, and Marriott.
The recent acquisition of a 35 per cent stake in HIP by Singaporean sovereign wealth fund GIC, valuing the business at €4 billion, demonstrates the sector’s robust growth potential. Despite environmental challenges such as fires and heatwaves affecting the region, the tourism industry has adapted by capitalising on extended booking periods beyond peak summer months.
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