AXA Real Estate Buys Landmark NH Grand Hotel Krasnapolsky for $204M

 AMSTERDAM, NETHERLANDS-AXA Real Estate Investment Managers has acquired the NH Grand Hotel Krasnapolsky, in central of Amsterdam, from NH Hoteles SA for $204 million (€157M) on behalf of a European and an Asian client. 

The hotel is in a prime location in Amsterdam. It comprises 468 rooms and suites, nearly 25,000 square feet (2,300 sqm) of conference, banqueting and meeting rooms across a total floor area of around 430,000 square feet (40,000 sqm), as well as the historic and unique Winter Garden.

Under the terms of the deal, NH Hoteles will continue as the hotel's operator, operating within a 25-year management contract.  NH Hoteles and AXA Real Estate will also undertake a joint, phased, $49 million (€38M) renovation and repositioning project which will begin next year. Plans call for completion by 2017.

AXA's client's interest in the asset will be managed by AXA Real Estate's specialist hospitality asset management team which currently manages a portfolio of 101 hotels across Europe, worth more than $2.5 billion.

“This transaction highlights the leadership that AXA Real Estate is taking on sourcing, structuring and executing value-add transactions,” said Riccardo Dallolio, European head of transactions at AXA. “The NH Grand Hotel Krasnapolsky is a landmark asset in an absolutely prime location within one of Europe's most dynamic capital cities, but is in need of substantial capital expenditure and real estate expertise to unlock its inherent value.  We have brought together two like-minded investors who understand the inherent opportunity presented by this asset and want to use the combined expertise of NH Hoteles and AXA Real Estate to create value by delivering a truly institutional quality asset."

Alphons Spaninks, head of asset management Benelux & Nordics at AXA Real Estate, added "This transaction is another clear example of AXA Real Estate's strong local asset investment management and execution skills, as well as our ability to attract international capital on relatively large transactions in the Netherlands."