The IAM Luxury Hotels Fund, managed by 1 Asset Management, has signed an agreement to sell the five-star Grand Hotel Vilnius, Curio Collection by Hilton. The historic hotel, located in the heart of Vilnius Old Town opposite Cathedral Square, is being acquired by Spectra B.V., a company within the Tesonet group. The transaction is expected to close upon satisfaction of customary closing conditions and receipt of the required regulatory approvals.

Grand Hotel Vilnius is one of the very few genuine trophy hotel assets in the Baltic region. With a history spanning more than a century, a prime location overlooking Cathedral Square, and membership in the internationally recognised Curio Collection by Hilton, the property has established itself as one of Lithuania’s most valuable hospitality assets.

Since 2024, the hotel has been owned by IAM Luxury Hotels Fund, whose investment strategy focuses on acquiring and enhancing exceptional hotel properties across Europe. Last year, the fund launched a renovation programme valued at more than EUR 13 million. Designed by the London-based architecture and interior design studio Vita Architecture, the project includes the refurbishment of guest rooms, conference facilities and public areas, together with extensive upgrades to the building’s engineering infrastructure, further strengthening the hotel’s competitiveness in the international luxury hospitality market. The renovation programme will continue after completion of the transaction as originally planned.

“When I returned to Lithuania after many years in the United States, I was looking for opportunities to invest in exceptional assets with long-term value. I recognised the potential of Grand Hotel Vilnius many years ago, and later entrusted its management to IAM Luxury Hotels Fund, which continued implementing a long-term strategy focused on enhancing the property’s value. Consistent investment, active asset management and a clear long-term vision have significantly increased the hotel’s value. We are pleased to hand it over today to a new owner as one of the region’s most prestigious hospitality properties,” says Marius Jakulis Jason, the fund’s principal investor.

According to Mindaugas Strėlis, Chairman of the Board of 1 Asset Management, the transaction demonstrates the company’s ability to create value through active management of premium real estate assets.

“Our objective was not only to renovate the hotel but also to enhance its investment value. Grand Hotel Vilnius is one of those truly exceptional properties for which there are virtually no substitutes in the Baltic region. Historic, internationally recognised luxury hotels in prime capital city locations rarely become available on the market. Our active asset management strategy has proven highly successful—even during the renovation, the hotel exceeded budget across all key operating metrics in the second quarter of this year. We are handing over Lithuania’s most prestigious and iconic hotel to its new owner—a unique trophy asset with virtually no comparable property in the region, supported by strong operating performance and a solid foundation for further value creation,” says Mr Strėlis.

Despite the ongoing renovation works, the hotel continues to deliver strong operating performance. According to Ieva Kuodė, Fund Manager of IAM Luxury Hotels Fund, average occupancy reached 85.9%, the Average Daily Rate (ADR) amounted to EUR 202.7, while Revenue per Available Room (RevPAR) reached EUR 175.9, nearly 5% above budget. In June, the hotel also significantly outperformed other five-star hotels in Vilnius in terms of RevPAR.

The transaction marks another successful exit by 1 Asset Management in the hospitality sector and further validates the company’s strategy of creating value through active management of high-quality real estate assets across Europe. Over the past year, the company also successfully exited two investments held by Airport Hotels Fund through the sale of hotels located near Vilnius and Kraków international airports. Today, IAM Luxury Hotels Fund owns the five-star Radisson Collection Astorija Hotel, Vilnius and is developing the conversion of a historic building in the centre of Rome into a luxury five-star hotel.