The first investment by the 1 Asset Management fund airport hotels fund – the business-class hotel park inn by radisson vilnius airport hotel & conference centre – has been successfully sold to the Lithuanian company UAB BTL Holding. Located just 450 meters from Vilnius airport terminal, the property stands as a successful example of how the fund can execute ambitious projects even amidst geopolitical tensions and high interest rate environments.

The hotel was built and completed during particularly challenging times – construction was finalized in February 2020, but the opening was delayed until October of the same year due to the outbreak of the pandemic. The first year was marked by COVID-19 restrictions, and in 2021, the hotel’s average occupancy was only 33%. However, the situation began to improve from 2022, and by Q4 of 2023, the average occupancy jumped to 84%, significantly exceeding the budgeted 72%.

“Although we opened the hotel just before the pandemic, together with a professional management team we proved that the asset can generate returns for investors and surpass projected results. Initially, the hotel was managed by radisson hotel group, but in 2022 we transitioned to a franchise model and transferred operations to apex alliance hotel management. This allowed for more efficient daily operations, reduced costs, and further improved performance,” notes fund partner Laurynas Antropikas.

The pandemic required additional working capital and extended project timelines, but the final result is encouraging – investors received 1.79 times their invested capital. Considering the full economic, geopolitical, and pandemic context, the investment return is deemed very solid.

This investment was launched back in 2018 together with anchor investors – Marius Jakulis Jason, development company VPH, and investment services firm Orion Securities. They believed in the project before construction began and took on greater risk during the early stage when the construction permit had just been obtained. Later, once the groundwork had been laid, external investors were invited to join.

From the beginning, the fund had a clear strategy – to invest in hotels near international airports. This is a segment where demand is steadily growing among both business travelers and frequent tourists. Hotels in this niche become an essential part of infrastructure, offering convenient accommodation, meeting spaces, and a range of services for clients seeking efficiency, convenience, and time savings.

“We see a clear logic in investing in hotels located in strategically attractive locations, such as near airports. park inn by radisson near Vilnius airport is not only a well-developed project but also an asset supported by strong operating results. We believe in the long-term value of this property and its growth potential. With this investment, we become financial investors seeking sustainable returns from reliable, income-generating assets,” comments a representative of UAB BTL Holding.

“This project is important to us because it marked the start of our focused investment strategy in the airport hotel segment, together with our partner and investor Marius Jakulis Jason and the fund team. We paid close attention to market analysis, understood user behavior and the competitive landscape, which allowed us to make informed decisions in a timely manner. The sale of the hotel today confirms that the chosen direction was the right one,” says Mindaugas Strėlis, head of the family office Taurus Wealth.

The hotels managed by airport hotels fund exceeded the average occupancy levels of their respective cities by more than 10% in 2023, while maintaining competitive pricing. The fund’s current portfolio includes three properties – in Vilnius, Riga, and Krakow. In 2024 alone, the fund paid out 4.2 million euros in dividends to its investors.

“The sale of this hotel marks the completion of the first investment cycle and confirms the sustainability of the chosen strategy as well as the fund’s ability to create and realize value. This successfully implemented project is a clear proof that even under unfavorable conditions, professional management and a clear vision can help achieve goals and deliver real returns to investors,” summarizes fund partner Laurynas Antropikas.