Blackstone Invests €500M+ in Southern European Hotels

According to the Financial Times, Blackstone (BX)—the world’s largest real estate investor—has committed over €500M in the past year to buying and upgrading hotels in southern Europe.

European Luxury Living

Blackstone’s latest acquisition is the Grand Hyatt Athens, purchased for €235M from Henderson Park and Hines. The trophy hotel has already undergone renovations and brand integration.

Hotel Investment Partners, acquired by Blackstone in 2017, will now manage the hotel under Blackstone’s ownership. It will continue its strategy of enhancing property value through upgrades and partnerships with top-tier operators.

Growing Hotel Portfolio

The investment highlights Blackstone’s confidence in the region’s robust tourism rebound, driven by increased global visitor numbers and longer vacation seasons. Blackstone now owns 22K hotel rooms across more than 70 properties in southern Europe, including 10 hotels in Greece. 

“Southern European countries are experiencing increasing visitor numbers… all pointing to strong long-term investment fundamentals,” said James Seppala, head of real estate for Europe at Blackstone.

The portfolio’s expansion has been facilitated by Blackstone’s acquisition of Hotel Investment Partners. HIP focuses on purchasing smaller, family-owned properties, refurbishing them, and leasing them to luxury operators like Ritz-Carlton, Hilton, and Marriott.

In 2023, Singaporean sovereign wealth fund GIC acquired a 35% stake in HIP, valuing it at €4B and providing funds for further acquisitions and upgrades.

Growth Trajectory

Southern Europe’s hotel market is poised for further growth, supported by the under-penetration of global hotel brands and rising M&A activity. 

According to Deloitte, 54% of hotel businesses plan acquisitions in the coming year, with Spain and Portugal identified as high-potential markets.

Despite climate challenges, including heatwaves and drought, the region has benefited from extended “shoulder seasons,” increasing bookings before and after peak summer months.

Why It Matters

Blackstone’s aggressive investments reflect a broader trend among institutional investors leveraging post-pandemic travel surges and premium tourist markets. 

With strong fundamentals and a well-capitalized partner in GIC, Blackstone is positioned to solidify its dominance in southern European hospitality further..