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Press Releases 2020

Acquisition of the Cour des Loges Hotel in Lyon for the Principal Hotel Real Estate Fund II for € 24.5 million

NEWS, 2020

PRINCIPAL REAL ESTATE EUROPE “ PRINCIPAL”, is delighted to confirm the closing of the acquisition of the Cour des Loges Hotel in Lyon for € 24.50 million on behalf of the Principal Hotel Real Estate Fund II ( “Hotelfund II” ) from a local real estate investor group. The 5* hotel is located in the heart of the old town of Lyon, a UNESCO World Heritage listed district. The Cour des Loges has 60 rooms, two restaurants, a bar, a spa, several meeting rooms as well as a hidden garden. As part of the transaction and its value-add strategy, PRINCIPAL entered into a long-term lease with the Radisson Hotel Group (“Radisson”), and in cooperation with Radisson will renovate and reposition the hotel under the Radisson Collection brand.


Following the acquisition of the Ona Hotel Terra last month, this acquisition is another example of the value-add strategy of the Hotelfund II: acquiring high quality 3-5* hotels in strategic locations, in major cities across Europe with significant potential to increase value. This hotel was marketed as part of a wider portfolio, before being selected by PRINCIPAL as the asset most fitting for our strategy. The hotel’s exceptional location in the Vieux-Lyon, the historical building with its renaissance elements as well as the well-established Michelin star restaurant, “The Loges”, together with the renovation and agreement with Radisson provide the key components for this value creation. After the successful closing, Radisson and PRINCIPAL will work closely together to renovate the hotel creating a unique experience and destination for business and leisure travellers alike, while carefully preserving the character and history of the building.

After the successful sale of the hotel portfolio in the Principal Hotel Immobilien Spezialfonds (“Hotelfund I”), which as reported significantly exceeded target returns, this is a significant step by PRINCIPAL on the acquisition front. Indeed, this is the third hotel PRINCIPAL has acquired on behalf of Hotelfund II and follows the signing of significant additional equity for Hotelfund II, providing it with the capacity to again invest up to €500 million in European high-quality real estate assets.

Jochen Schaefer-Suren, CEO of Principal’s Hotel and Leisure division, commented: “The Cour des Loges in Lyon is a unique hotel and a great acquisition for our Hotelfund II and we are thankful to our operating partner Radisson, one of the leading international hotel groups with a very strong covenant,  with whom we were able to sign a long-term lease agreement. The location, paired with the quality of the asset and the potential of the planned renovation and repositioning, are exactly the kind of value-add hotel investments PRINCIPAL is looking for. As a result, we are still looking for further hotel investments for Hotelfund II in 2020 and beyond.”

Principal contact for further information:

  Jochen Schaefer-Suren

Principal Real Estate Europe
+44 207 355 8800

Principal contact for further information:

James Verstringhe

T +44 (0)20 79203150

Notes for editors:

Principal Hotel Real Estate Fund II

The Principal Hotel Fund II is structured as a Luxemburg SCS and provides investors with the opportunity to participate in value-add opportunities at a point in the cycle where many hotels with long-term fixed rent leases are fully valued yet rental growth is an essential driver to protect capital values. To achieve such rental growth the fund’s strategy focuses in select hotel markets on value creative asset management initiatives at the individual hotel asset, which can be achieved in any general market context. However, this requires a very experienced specialist hotel real estate fund management team like Principal’s hotel team to design and implement such an asset specific value-add strategy.

Principal Real Estate Europe

 Principal Real Estate Europe is part of Principal Global Investors’ dedicated real estate business, Principal Real Estate Investors, which manages or sub-advises $86.4 billion in real estate assets globally (as of December 31, 2019).

The group’s real estate capabilities cover all four quadrants encompassing public and private, equity and debt investment solutions.

In Europe, Principal Real Estate Europe operates from offices in London, Frankfurt, Amsterdam, Paris, Lisbon, Luxembourg, Madrid and Milan, employing more than 100 staff who manage real estate across all asset classes in nine different countries.

Principal Global Investors

Principal Global Investors®, a diversified asset management organization and a member of the Principal Financial Group®, leads global asset management at Principal®. As a multi-boutique firm, we bring a focused perspective and offer expertise across a host of asset classes.

At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.

Principal Global Investors manages approximately $476.4 billion in assets on behalf of clients located in over 80 countries, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of December 31, 2019).

To find out more, visit us at

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