ECE Real Estate Partners and The Palladium Hotel Group have signed a 20-year contract for the operation of the Bonvecchiati Hotel in Venice by its boutique lifestyle brand Only YOU Hotels.
The hotel was recently acquired by the ECE European Lodging Recovery Fund in a joint venture with hotel developers Soravia and denkmalneu and is being refurbished and repositioned.
The renovation will result in connecting the Hotel Bonvecchiati and Palace Bonvecchiat creating a 168-room property.
Why it matters
Italy is a hot market now and Venice remains a crowded city for hotels. Picking Palladium, which is more well known for its resorts, over another established brand is a bold move by ECE and its partners.
What they said
Ascan Kókai, principal at ECE Real Estate Partners, said: "The institutional lease agreement now signed matches perfectly the value-add strategy of ECE’s hotel fund. It is a hybrid lease with an indexed and guaranteed minimum rent and a variable turnover rent. Fund investors benefit from both inflation protection and upside potential with a capex of €40 million."