PREM to invest €27m in Belgian hotel

THE PREM Group — the Dublin-headquartered commercial property management company — has announced a €27 million investment in a new hotel development in Belgium and is promising a number of further investments later in the year.

The new investment — which will be made through the European Hotel Consortium (EHC), a joint venture between PREM and Goodbody Stockbrokers — involves the acquisition and refurbishment of a property in the centre of Brussels, which will be reopened as a four star boutique hotel, trading under the PREM Group’s Leopold Hotels brand.

The new property is due to be operating by July of next year.

The EHC is no stranger to the area. It already operates 13 three and four star hotels, under various brands, across both Belgium and France.

These trade under the Crowne Plaza, Ramada, Ramada Plaza, Holiday Inn and Holiday Inn Express names.

Despite the likelihood of raised eyebrows over the extent of such an investment in the current economic climate, PREM said that despite the downturn, Brussels remains one of the few European cities still experiencing growth in its hotel and leisure industry.

“Brussels has seen continued growth in the hotel sector with average occupancy rates up by 3.3% to 70.8% last year. Hotels in Brussels are considered less expensive than other capital cities in Europe and a stable corporate demand from European Commission conferences helps to keep hotel performance strong.

This acquisition further strengthens our foothold in Europe and allows us to continue to build up our property portfolio both at home and abroad,” said PREM Group managing director Jim Murphy.

EHC are considering further hotel acquisitions this year, most of which are likely to be located in mainland Europe.

Specific locations in Poland, Germany and The Netherlands are being sized up for investments in the near future, it is understood.