Limestone Capital acquires Corsica hotel

France: Boutique hotel investment fund Limestone Capital has acquired Hotel U Palazzu Serenu, a boutique luxury hotel in Corsica.

The investment comes three months after the announcement of Limestone Capital’s Amethyst Fund launch in September 2020 and is the fourth hotel acquisition for the fund. The deal highlights the fund’s underlying thesis that turning small underperforming hotels into professionally managed, tech-enabled boutique hotels will offer highly attractive equity returns in the post-COVID luxury hospitality sector.

As part of the deal, Limestone will make capex investment, integrate technology to increase distribution and reduce cost and reposition the property for an audience seeking “unspoiled nature and authentic travel experiences at a premium price point”. Limestone says, as with all of its investments, it will place the values of sustainability, wellness, and integration at the heart of the hotel experience.

The deal forms part of Limestone’s wider investment approach. In partnership with leading family offices across the world, Limestone expects to continue to invest in underperforming hotels across a number of European destinations and utilise its integrated asset management approach to create value.

Benjamin Habbel, managing partner of Limestone Capital said: “We continue to see excellent opportunities in the boutique hotel sector across Europe with double digit return potential. With recent major steps towards the full reopening of the international hospitality sector, we are confident that recovery following COVID-19 will be swift for premium assets in sought-after destinations. U Palazzu Serenu is an exceptional opportunity with the potential to deliver strong yields. It will benefit from centralised revenue management, tech-driven distribution and services, and experienced management. It helps that Corsica is one of the few undiscovered gems of Europe. We expect strong growth from arrivals from Northern Europe, Germany, and the US.”

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