Austrian hotel owner S IMMO Ag, 100% owned by CPI Europe, has sold the 364-room Marriott Budapest for €115 million ($134.6 million), or approximately €316,000 per key.
The Marriott Budapest's new owner is a consortium headed by István Tiborcz, the son-in-law of Hungarian Prime Minister Viktor Orbán. The consortium includes Tiborcz's BDPST Group, as well as Diorit Private Equity Fund, which is managed by Gránit Asset Management.
CPI Europe considers the sale of the hotel a disposition of one of its non-core assets, according to a news release.
“The sale was based on an open international tender, from which the BDPST Group and the Diorit Private Equity Fund, managed by Gránit Asset Management, emerged as the best bidders,” the release stated.
According to Daily News Hungary, the transaction includes the hotel’s former ownership management firm Duna Szálloda Zrt. The deal is pending regulatory approval, but once completed, Marriott International will continue to operate the Marriott Budapest under its new ownership.
Marriott has operated the hotel since 1993. When it opened on New Year’s Eve 1969, the hotel was known as the Hotel Duna InterContinental.
According to CoStar data, Tiborcz’s BDPST has a financial interest in seven other hotels in Hungary, three of which are in Budapest: the 234-room Mandarin Oriental Gellert; 137-room D8 Hotel; and 48-room Verno House Budapest, Vignette Collection. It also owns 167 rooms in two hotels in the Hungarian towns of Gyöngyös and Tarcal.
CPI Europe owns approximately 400 properties across all real estate classes with a focus on office and retail. Its portfolio's combined value is approximately €8 billion, according to its website. It trades on the Vienna and Warsaw stock exchanges.