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Credit Suisse fund selling upmarket Swiss hotels at a discount

Zurich

A Credit Suisse fund is selling several Swiss properties "at a slight discount", including a popular egg-shaped hotel in Davos that has hosted US President Donald Trump and U2 singer Bono during past World Economic Forum (WEF) events.

Swiss hotel and hospital operator Aevis Victoria, whose holdings include the Victoria Jungfrau in Interlaken, said on Wednesday that it has entered into an agreement with Credit Suisse Real Estate Fund Hospitality to acquire eight hotel properties with a total of 640 rooms.

Aevis Victoria said the acquisitions bring the value of properties in its Swiss Hotel Properties SA subsidiary to nearly 500 million Swiss francs (S$684 million), with rental income of more than 20 million francs.

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The purchase price for the package that includes the InterContinental property in Davos was not given, although Aevis Victoria said it was "set at a slight discount from the market value as at Dec 31, 2018".

The six-year-old, 216-room InterContinental hotel in Davos - built for some US$150 million is known as the "Golden Egg" due to its colour and distinct oval shape - has been favoured by leaders and celebrities during the annual WEF meeting of business and political leaders.

Credit Suisse did not immediately give a reason for why the fund was selling the properties which include the five-star Mont Cervin and Petit Cervin buildings beneath the 4,478-metre Matterhorn mountain in Zermatt. REUTERS