Milano - 20122

Investment Opportunity – Hotel Property in Milan

#86341531 € 17.000.000

Surface area: 3,500 sqm
Rooms: 75
Transaction structure: Possibility to acquire shares of the owning company

Main Features

Prestigious asset: 4★ hotel located in Milan, with 75 rooms and modern common areas.

Secured income: currently leased to a tenant company paying a fixed minimum annual rent of € 650,000.

Additional upside potential: the lease agreement grants the ownership an extra 20% revenue share on turnover. This bonus is not currently collected, leaving room for future value creation.

Lease Agreement

Duration: signed in 2021 with a 9-year term (valid until 2030).

Tenant exit: in case of interest to gain full availability of the asset, a lump-sum payment of € 2,000,000 is required as severance.

Transaction Structure

Sale can be structured via share deal, with potential tax and operational benefits for the buyer.

Highlights

Strategic location in Milan, one of Europe’s most dynamic hospitality markets.

Solid lease contract with a reliable tenant.

Potential revenue increase through the turnover-based variable rent.

Additional upside linked to potential renegotiation or replacement of the operator.

Asking Price
€ 17,000,000 – non-negotiable

The acquisition of the Hotel Milan (75 rooms) is proposed at € 15 million, with the possibility to buy out the current operator for € 2 million. The project foresees a conversion into a 5★ luxury hotel, potentially under the management of an international chain, in one of Europe’s most attractive and dynamic high-end hospitality markets.

The financial plan includes:

Renovation (Capex) of € 200k–270k per key plus € 5–6 million for common areas.

Soft costs and contingency estimated at 15 %.

Performance assumptions with ADRs between € 600 and € 850 and occupancy rates of 70–80 %.

Projected total revenues range from € 15.4 million (conservative scenario) to € 27.9 million (upside scenario), with NOI between € 3.2 and € 10 million. The operational yield on cost is estimated between 8.5 % and 18.5 %, with an exit valuation significantly above the total project cost (€ 37–55 million).

In summary: a unique repositioning opportunity as a 5★ luxury hotel in the heart of Milan, with solid operational returns and strong capital appreciation potential.