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Invesco Real Estate, the global real estate investment business of Invesco Ltd (NYSE: IVZ), has sold the Andaz Amsterdam Prinsengracht, a 122-room luxury hotel in the heart of Amsterdam's Canal District, on behalf of its European Hotel Fund (EHF).
The buyer is a consortium of investors led by First Sponsor Group Limited (SGX: ADN), a Singapore Exchange-listed property developer and hotel investor with an established presence in the Netherlands, Germany and China.
A 122-room hotel with a long-term Hyatt lease
The property sits across two conjoined canal-side buildings with a total gross floor area of 10,618 m², and is operated under a long-term lease agreement directly with Hyatt Hotels, making it one of the flagship assets for Hyatt's Andaz brand in Europe.
The asset also includes 1,374 m² of office space, fully leased to a range of independent tenants, creating a dual-income structure on a single historic building.
Invesco acquired the hotel in 2019 as the EHF's anchor and flagship asset, specifically for its capacity to provide lower-risk, stable cash flows. Over its ownership period, Invesco carried out a series of targeted upgrades, including:
- Repositioning of the reception and entrance
- Sustainability improvements to reduce carbon emissions
- Enhancements to the hotel's food and beverage offer
What the Hyatt lease and Amsterdam's supply constraints mean
Because the hotel is operated under a long-term direct lease with Hyatt Hotels, the incoming First Sponsor consortium is effectively acquiring a creditworthy, long-duration income stream from a global hotel group, a structure with a different risk profile from an HMA or franchise arrangement where the owner bears trading risk.
Amsterdam also introduced a hotel development moratorium in 2017, restricting new hotel construction within the city's boundaries and in the Canal District in particular.
With new luxury hotel supply in the Canal District effectively frozen, the scarcity value of existing, well-located assets with strong operator covenants has become a key factor in how buyers price such properties.
Also Read: Westbridge Secures Green Power Supply for Skanska Poland
What Invesco says about the sale
Christopher Brassington, Senior Director Fund Management at Invesco Real Estate, said the company continues to take an active approach to its European hotel portfolio, remaining disciplined in sales and reinvestment to deliver enhanced returns for investors and that travel dynamics across Europe continue to create opportunities for the fund to redeploy capital into new assets.
Stefan Struller, Director Transactions at Invesco Real Estate, described First Sponsor as a highly experienced, long-term investor in hotels with strong operating expertise and thanked the First Sponsor team for what he called a pleasant collaboration throughout the transaction process.
Invesco was advised by CMS on legal matters and PwC on tax, financial and structuring matters.
The First Sponsor-led consortium was advised by Greenberg Traurig on legal matters and Loyens & Loeff on tax, financial and structuring matters.
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