The second investment of 1 Asset Management fund Airport Hotels Fund — the upper-economy-class hotel Hampton by Hilton Krakow Airport — has been successfully sold to the international hotel management company Apex Alliance. The 173-room, 5,588 sq. m. property, located just 450 metres from the Kraków International Airport terminal, marks another successfully realized fund project, confirming the effectiveness of the strategy.

The hotel, which began operations in 2022, demonstrated strong performance from the very start and quickly established itself in the market. Already in its first full year of operation it outperformed competitors in occupancy, and in 2025 achieved an average occupancy rate of 87% and an average room rate of nearly €99. Total annual revenue reached €6.286 million, while EBITDA came in at €2.2 million, confirming the asset’s maturity and stable cash flow.

“This project is a clear example of how consistent development and professional management can create a high-quality, steadily income-generating asset in the hotel market. Having reached optimal operational metrics, we made the strategic decision to realize the investment and close the fund,” says Alius Jakubėlis, head of 1 Asset Management.

The new owner, Apex Alliance, currently manages 18 hotels, five of which are located near international airports. The acquisition of the Kraków hotel naturally strengthens this portfolio direction and creates additional synergy among the company’s airport-segment properties.

“We have been operating the Kraków hotel since its opening, so we have a clear view of its commercial potential both today and over the long term. This transaction is a logical step for us: we know the asset well, we see clear synergy with our other airport hotels, and we believe it will continue to grow in value,” says Augustinas Barauskas, partner at Apex Alliance.

The partnership between Apex Alliance and 1 Asset Management in the airport hotel segment has spanned several years — the companies have collaborated on hotel projects at Vilnius and Kraków airports and continue to collaborate on the Riga airport hotel project.

Kraków Airport is the second largest in Poland, serving more than 9 million passengers per year, and ongoing infrastructure development along with growing passenger volumes provide a solid foundation for hotel demand at this location. The strategic position near the airport, limited direct competition, and the city’s growing importance as a tourist and business hub all contributed to the hotel’s strong operational results.

Based on preliminary data, the investment is expected to generate approximately a 2.3x money multiple for fund investors, with an internal rate of return of around 14–15%. Fund manager Laurynas Antropikas notes that “given the challenges the project faced — such as the impact of the COVID-19 pandemic and rising interest rates — the results are truly solid, viewed positively, and in line with the fund’s strategic objectives.”

From the outset, Airport Hotels Fund adhered to a consistent strategy of investing in hotels near international airports, where demand is structurally strong and less dependent on seasonality. Such assets become an important part of transport infrastructure, serving both business and leisure travellers.

The sale of Hampton by Hilton Krakow Airport marks the end of the second investment cycle and, simultaneously, the completion of the fund’s overall strategy. “Two successfully realized projects in different markets confirm that the chosen direction — investing in airport hotels — allows for value creation and attractive returns for investors even in a changing economic environment,” says Alius Jakubėlis.

Airport Hotels Fund began implementing its airport hotel investment strategy in 2017, consistently developing projects in strategically important locations. Over this period, the fund built three hotels — near Vilnius, Riga, and Kraków airports — forming a diversified, stable income-generating portfolio.

In 2025, 1 Asset Management successfully realized its first fund investment by selling the Park Inn by Radisson Vilnius Airport Hotel & Conference Centre near Vilnius Airport, thereby completing the full investment cycle and cementing the fund’s ability to consistently create and realize value for investors. Most recently, the fund paid 2025 dividends to investors from several projects — €2.65 million was distributed from the Riga airport hotel investment, and €7.2 million from the Kraków hotel, the latter figure driven by increased bank financing.

About 1 Asset Management

1 Asset Management is a licensed investment fund management company regulated by the Bank of Lithuania. It provides services to institutional and private investors, focusing on niche asset classes and value creation strategies. The company invests in modern student housing, historic and airport-adjacent hotels, veterinary clinics, forests, educational infrastructure, private debt in Central and Eastern Europe, and large-cap companies listed on US stock exchanges. Assets under management currently exceed approximately €750 million, with more than 450 investors. In 2025, the company expanded internationally by establishing a presence in Luxembourg through the acquisition of a local management company. This expansion enables more flexible fund structures, access to global investment opportunities, and stronger partnerships with international investors.