Europa Capital and WX Management Services have announced that they have completed the acquisition of the Radisson Blu Centrum Hotel in central Warsaw.
The seller was Shaw Investments, which owned the hotel through its PHD Polska (formerly BRC Holding) vehicle. The acquisition took place through the purchase of PHD’s shares. The 311-room, four-star hotel with conference facilities, restaurants and leisure facilities including a gym, swimming pool and spa, is located at ul. Grzybowska 24 in Warsaw’s CBD. It was opened in 2003 and has a total area of 30,000 sqm.
WXMS advised Europa Capital in the process and is also a co-investor in the transaction and will provide ongoing asset management services for the hotel.
Robert Martin, the co-founding principal and head of Central Europe at Europa, has commented on the closure of the deal: “The Warsaw hotel market is currently experiencing a period of demand supply imbalance. This is a fantastically well-located asset in central Warsaw with a very strong performance track record. We have experience in this sector with our successful refurbishment of the Sobieski Hotel and are teaming up with the same partner in WX Management Services to undertake a comprehensive refurbishment and to drive performance. We will be working in close co-operation with Radisson, who will continue to operate the hotel.”
James Farmer, the director of acquisitions for Central Europe at Europa Capital, also commented: “This investment not only offers Europa stable, income led returns, but also the opportunity to significantly improve the performance of the investment through refurbishment and operational efficiency in what is generally a growing hotel environment. The asset has been secured at an attractive price when compared to current pricing levels in other sectors in this market. Furthermore, this acquisition builds on Europa’s excellent track record of securing truly off market investments that are under the radar of our competitors.”