Corinthia sells big stake in Lisbon

LISBON – Orion Capital Managers has formed a joint venture with International Hotel Investments Plc (IHI), owner of the Corinthia Hotels Group portfolio and brand, to acquire and own 72% of the 517-key Corinthia Hotel Lisbon. The investment marks the first deployment of capital from Orion European Real Estate Fund VI, which is targeting a final close at €1.5 billion.

For IHI, the deal frees up capital to fund further growth of the brand and achieve shareholder return objectives. IHI currently owns 100% of the asset, will retain a 28% interest in the JV following completion and its subsidiary Corinthia Hotels Ltd. will continue to manage and operate the hotel.

IHI also highlighted that the proposed transaction establishes a valuation for the hotel above book value. Corinthia Hotel Lisbon had an asset value of €144 million on December 31, 2024.

PE firm Orion, founded in 1999 with offices in London, Madrid, Milan and Paris, said the acquisition aligns with its sector agnostic investment mandate to identify opportunities across a wide range of sectors where it can generate alpha. The acquisition reflects Orion’s conviction in investment into high-quality hospitality assets in prime European cities, as well as partnering with well-established brands, owners, and operators.

Notable assets in the Orion portfolio include office developments with sustainability credentials in London, Milan and Lisbon, the Sotogrande resort in Spain, and residential developers in Spain and Portugal.

IHI has active investments or operations in more than 20 countries, including luxury Corinthia hotels in global gateway cities such as London, New York, Brussels and a pipeline of owned or managed hotels in destinations such as Rome and across the Gulf.

Corinthia Hotel Lisbon, the biggest luxury hotel in the city, just underwent a complete refurbishment.

“This structured transaction on a high-quality asset with proven financial performance and significant upside potential thanks to the strength of the Lisbon hospitality market and the just completed refurbishment is a great example of the opportunities Fund VI is pursuing in today’s market,” said Orion Partner Rami Badr.