Covivio is accelerating its expansion in the hotel sector with the acquisition of four hotels in Milan for €217 million

The transaction strengthens the Group’s presence in the hotel sector in Italy, in Milan 1 , a market supported by robust demand in both the business and leisure segments, where Covivio already benefits from a strong office footprint, thus completing its development across Europe.

The fully recently renovated portfolio of hotels ensures high quality standards and modern amenities. The assets will also feature high energy performances and a low environmental impact: the enhancement process will lead the properties to obtain LEED Gold/BREEAM In- Use Very Good certification. All assets comply with the European Taxonomy and meet the CRREM emission targets set for 2030.

The Milan hotels, located in the Scalo Farini area, in Bicocca, in Corso Buenos Aires, and in Piazzale Loreto, offer a total of approximately 900 rooms distributed across areas well-served by public transportation.

The acquisition was finalized through a sale and leaseback transaction with Invest Hospitality, which will continue to operate as the manager of the properties. Through its integrated platform, Invest Hospitality benefits from a leading reputation and has built a solid track record, confirming its position as one of the first operators in the Milan hotel market.

The lease agreements of 21 years provide for a minimum guaranteed rent and a variable component linked to the hotels’ revenues. This acquisition offers a guaranteed minimum rental yield of 6% and a target yield, including variable rent, of approximately 7%.