Internos completes acquisition of Hilton Danube, Vienna
Internos Global Investors announces the closing of the acquisition of the Hilton Danube in Vienna, Austria, from?Immofinanz?AG, with a total investment of close to ?52 million on behalf of the Internos Hotel Real Estate Fund. This acquisition represents the seventh hotel Internos has acquired for the Fund in the last twelve months.
The property is an existing, high quality, 4* hotel with 367 rooms with a strong cash flow track record, well located in a strategic location in Vienna. It is operated under a long lease by the Hilton Group. The hotel?s profile and location in the capital of Austria – a core eurozone country and target investment region for the Fund – fits perfectly with the Fund?s investment strategy and adds to the portfolio?s diversification with the addition of a further city, which is strong hotel market; a very good hotel asset; and, the Hilton brand, a new brand in the Fund?s portfolio.
The stable income of the now seven hotel strong portfolio, the enhanced diversification and the conservative debt of only 40% LTV, contribute to the Fund?s low risk profile while generating a very good level of income. This reflects Internos? strategy for institutional investors in today?s income oriented market. As a result of the attractive pricing of acquisitions to date and due to historically low interest rates achieved so far, the Fund was able in its first year to pay dividends of over 8% p.a. (above its 7.5% target) and is forecast to reach or exceed its IRR target of 11+% p.a.