The Louis Group, a Mediterranean hotel group, has agreed to divest its five hotel assets located in the Greek Islands to Blackstone Real Estate Partners Europe for a total enterprise value of €178.6 million.

The five assets with a total of 1,464 hotel rooms include Corcyra Beach and Grand Hotel in Corfu; Zante Beach and Plagos Beach, Zante; Creta Princess, in Crete.

James Seppala – head, European Real Estate, Blackstone said: “Greece is a fantastic destination with an incredible history, wonderful weather, and meaningfully improving connectivity with the rest of the world.

“We are excited to invest here, to help Greece maintain its rightful place as a premier global tourist destination and spur local economic growth.

“This transaction reflects our confidence in the Greek investment environment and we hope to invest further.”

Louis Group under the management of HIP, a hospitality company owned by funds managed by Blackstone, will continue to operate the hotels.

Costakis Loizou – chairman, Louis Group said: “The transformation of these hotels will be a boost for the Greek tourist sector and we look forward to working with both Blackstone and HIP to enhance the experience of guests staying in these hotels.”

Blackstone through HIP will renovate and reposition the five hotels, increasing HIP’s Greek presence.

Alejandro Hernández-Puértolas – CEO and founding partner, HIP said: “We are very pleased to announce our first investment outside of Spain, and more specifically in Greece, a country that is globally renowned for its leisure offering and unique locations.”

Completion of the transaction is subject to the customary closing conditions, including antitrust authorities’ approval.

Acquired by Blackstone real estate funds in 2017, HIP with 60 hotels is already investing €500 million in its existing portfolio of Spanish resorts.

Louis Hotels, a member of Louis, operates 26 hotels and resorts in Greece and Cyprus while Blackstone’s real estate business has US$154 billion of investor capital under management.

  Alejandro Hernández-Puértolas, Blackstone Real Estate Partners Europe, Costakis Loizou, Greece, James Seppala, Louis Group