Catalyst Capital, the European real estate investment, development and fund management company, has kicked off a new €250-million European hotel investment strategy by acquiring the former Diplomático Hotel on Rua Castilho in Lisbon. Catalyst acquired the asset from a family-owned company for €14.75 million for its Catalyst Core Plus European Property Fund (CCPEPF), a €1.3 billion real estate fund.
The company will also invest around €9 million to refurbish the building, turning it into a 95-room, four-star boutique hotel. The renovation is expected to start next year and be completed in 2023.
Staycity, an aparthotel manager, will manage the hotel through its premium brand Wilde Aparthotels. According to a statement, the company has signed a 25-year lease with annual increases indexed to inflation.
Catalyst’s new hotel investment strategy focuses on assets located in European cities with high barriers to entry and limited competitive supply, which can be transformed into four and 5-star tourist hotels.
Catalyst will continue to focus on investments in Northern Europe and Iberia from its offices in London, Paris, Frankfurt and Warsaw.