The ECE European Lodging Recovery Fund, a hotel real estate fund that is planned and currently being established by the fund management company ECE Real Estate Partners, has acquired its first seed asset, together with two experienced real estate developers as joint venture partners in this transaction, Soravia and Denkmalneu.
The Bonvecchiati building ensemble is located on Calle Goldoni just 150m from the famous Piazza San Marco in the middle of San Marco, the heart of Venice, on the main pedestrian axis to the Rialto Bridge. Besides the Palace Bonvecchiati, the complex consists of the Hotel Bonvecchiati and the Residenzia Bonvecchiati as well as additional retail areas. Located on its own canal with a large restaurant terrace and bridge, it represents the quintessence of Venice. With a total of 191 rooms, a restaurant, bar, spa and two moorings, it is also one of the largest hotel buildings in Venice.
The €100m investment is exemplary of the fund’s strategy to invest in excellent locations with a value-add approach. The large property with more than 10,000m² was acquired directly from the owning families, who had previously also run the business. As part of the investment, planning is now underway for extensive renovation and redevelopment during the early market recovery.
Given its scale and outstanding micro-location, interest from many international brands is already high. In line with its strategy, the fund is pursuing a repositioning in which the extensively renovated hotels will be operationally merged and placed in the hands of an international brand for the first time. The positioning in the high-quality lifestyle segment is intended as a unique selling point in the local market.