Vienna-based FLE GmbH, a company of the French LFPI Group, has announced the purchase of the Achat Premium Budapest, a four-star hotel with 135 rooms in the Non-Central Pest submarket of Budapest, on behalf of Luxembourg-based fund FLE SICAV FIS.
Budapest-based boutique commercial real estate company AN Limited assisted in the transactionʼs realization, notes a press release sent to the Budapest Business Journal.
The Achat hotelʼs location on Hungária körút offers guests easy access to the nearby Hungexpo Budapest Fair Center and Ferenc Liszt International Airport. The press release notes that the hotel is popular among both business and holiday travelers, with its 135 rooms and maisonette suites. Furthermore, the hotel’s function suites are suitable for meetings and conferences providing space for up to 90 people.
"Although our main activities are in Austria and Germany, due to our expansion strategy and aims at diversification we are establishing ourselves in alternative markets including the Central European region," said FLE GmbH Managing Partner Alexander Klafsky. "We seek to invest in modern, centrally located retail, office and hotel units, where there is good infrastructure, a quality tenant pool, and high occupancy rates enabling sustainable and adequate returns."
Because all these requirements are met by the Achat hotel, Klafsky said his team was eager to seal the deal, after Attila Hopka, managing director of AN Limited, drew their attention to the solid acquisition opportunity.
"It was a pleasure to work together with such an illustrious and proactive investor as FLE," said Hopka, noting that while hotel occupancy rates are rocketing, office vacancies have plummeted to unforeseen low levels, meaning that it is perhaps the last chance for investors to take action. He remarked that "we are two minutes to midnight" in terms of the property market cycle, which he expects to start turning soon.