Highgate and Eternam today announced that they have jointly acquired the Zafolia Hotel Athens, a 191-key independent hotel in downtown Athens.
The transaction marks Highgate’s first investment in Greece and expands its platform across Southern Europe. Building upon its Portugal portfolio, the company continues to pursue opportunities across Southern Europe spanning both urban hotels and destination resorts.
“This acquisition establishes Highgate’s presence in Greece and demonstrates Highgate’s ability to source and execute high-quality opportunities across markets,” said Nicholas Mellis, senior vice president of Acquisitions, Highgate. “We are delighted to be partnering with Eternam on this opportunity, and we look forward to expanding our partnership across Europe.”
For Eternam, the acquisition of Zafolia Hotel Athens marks the second investment completed by Alcyon Hospitality Europe, following the acquisition of the Hilton Garden Inn Rome Claridge in July. The third fund in Eternam’s dedicated hospitality investment range, Alcyon Hospitality Europe reflects the firm’s conviction in the long-term value-creation potential of European hospitality markets, particularly in major cities.
“Capital cities such as Rome and Athens combine structurally resilient leisure and business demand with quality hotel assets on which we see room for further value creation,” said Jonathan Donio, president of Eternam. “This is an investment thesis we intend to pursue with ambition, with the fund set to deploy approximately €60 million of equity over the next 18 months.”
Zafolia Hotel Athens is an upscale lifestyle hotel in downtown Athens featuring 191 guestrooms and suites and a seasonal rooftop pool and garden. It holds a Green Key international environmental certification and offers access to many city landmarks nearby.
The hotel has been family-owned and operated for nearly four decades. Highgate and Eternam aim to build upon the legacy of this longstanding property with reinvestment plans that include a renovation to all guestrooms and public spaces.