The Bouwinvest Institutional Hotel Fund is an investment fund that invests in hotel real estate exclusively for the Dutch construction sector pension fund bpfBOUW in line with the pension fund’s financial targets and social ambitions. The Fund focuses on strategic locations in the largest cities in the Netherlands. The hotel portfolio is characterised by diversification, not only geographically, but also in hotel concepts such as budget hotels, lifestyle and extended stay, where both business and leisure travellers feel at home. The geographic spread follows the national trend aimed at spreading the number of tourists across the country. Over the past few years, hotel real estate has developed from a niche market to a full-fledged investment category with attractive solid returns for institutional investors. The Hotel Fund's strategy is based on three pillars: growth, distribution across the the G10 hotel cities and sustainability.
The Hotel Fund has a growth strategy for the coming years. bpfBOUW is the sole shareholder in the Fund. Growth will mainly be realised by investing in hotels spread over the ten largest hotel cities in the Netherlands and across various hotel concepts and hotel segments.
‘We aim for long-term lease contracts with a single partner that stands out from the crowd,’Bas Jochims Director Dutch Office & Hotel Investments
We aim to invest at least 80% of the portfolio in the 10 largest hotel cities, with at least 50% in the Amsterdam/Schiphol region. Currently, the focus of the hotel portfolio is in Amsterdam and we are primarily looking for additional investments outside the capital city. This will enable us to spread risks and benefit from the positive economic and demographic outlook for other major hotel cities in the Netherlands.
In terms of sustainability, we set the bar high. In 2020, the Fund was awarded a GRESB five-star ratign in the annual GRESB benchmark survey. The Fund was also ranked the best-performing fund in the Netherlands and Europe and Global Sector Leader for the second consecutive year. This is a direct result of active asset management and a continuous dialogue with our tenants and other stakeholders.
Environmental, Social and Governance (ESG) factors will continue to play an important role in our investment strategy. We anticipate future sustainability wishes and requirements in both acquisitions and the existing portfolio and ensure resilience to climate change.
This is how we build on financial and social returns.