Most recently the ECE European Lodging Recovery Fund signed a 20-year lease agreement with the international operator Palladium Hotel Group for their lifestyle boutique brand Only YOU Hotel. The hybrid lease provides for an indexed minimum guaranteed rent as well as a variable turnover rent. Thus, fund investors benefit from both inflation protection and participation in the trading upside from the €40 million value-add repositioning project once the hotel reopens as Only YOU Bonvecchiati Venice in 2025.
Situated 150m from Piazza San Marco in the heart of Venice, the Bonvecchiati Ensemble, comprising the Hotel Bonvecchiati and the Palace Bonvecchiati hotel, is perfectly situated in what is a globally established tourism destination and UNESCO World Heritage site. The asset has a long-standing trading history as an independent, family-owned quality upscale hotel.
Due to its scale and prime location with direct access by gondola or boat and conveniently located on Calle Goldoni, one of the main pedestrian arteries, connecting Piazza San Marco and the equally famous Rialto bridge, the hotel benefits from international demand and offers full-service facilities of an upscale hotel including its own canal side terrace restaurant.
The Investment Strategy
- Acquired in 2021 by the ECE European Lodging Recovery Fund
- Significant value creation plan via a “manage-to-core” strategy under implementation:
- Reconfiguration of the buildings to create one single hotel connected via a central lobby and making the historic courtyard the exclusive entrance, creating a single identity, increasing the income earning surface and making the layout more efficient. Status: Planning applications being submitted, commencement of works onsite in late 2023.
- Comprehensively upgrade front- and back-of house including upgrade to technical installations to achieve a LEED Gold certification.
Status: Interior Design and technical planning near final
- Reposition the hotel in 5* lifestyle segment, a USP in the Venice market for a hotel of this size (168 rooms):
Status: Rebranding underway as Only YOU Hotel offering curated lifestyle hospitality and gastronomy concepts.
- Transfer the business operations to an internationally branded hotel tenant ensuring professional management, global distribution and income security for the Fund:
Status 20-year institutional lease signed with Palladium Hotel Group.
Calle Goldoni, 4488