The Covivio Milan hotel acquisition marks a major step in the group’s strategy to strengthen its presence in Italy’s hospitality market. First, Covivio acquired four-star hotels in Milan for a total value of €217 million through a sale and leaseback agreement with Invest Hospitality. Consequently, the transaction allows Covivio to secure stable returns while leveraging an experienced local operator.

Moreover, the Covivio Milan hotel acquisition includes strategically located assets in key districts such as Porta Venezia, Bicocca, Loreto, and Scalo Farini. These properties offer modern facilities, including meeting spaces and food and beverage services. In addition, several assets have undergone recent renovations or are currently being upgraded to meet high environmental standards. The company aims to achieve certifications such as Leed Gold or Breemam In-Use Very Good, reinforcing its sustainability focus.

At the same time, the agreement ensures operational continuity. Invest Hospitality will continue managing the hotels under a 21-year lease, which includes a guaranteed minimum rent and a variable component linked to revenues. Therefore, Covivio expects a minimum yield of 6%, with a potential overall return of around 7%.

Looking ahead, the Covivio Milan hotel acquisition highlights Milan’s strong appeal for institutional investors. On one hand, limited supply and high demand support long-term growth. On the other hand, structured deals like sale and leaseback provide financial flexibility and operational efficiency.