European Investor Covivio, Owner Of Coworking Brand Wellio, Expands Into Milan Hotels To Broaden Mixed Real Estate Portfolio

Covivio, a European real estate investor and owner of coworking brand Wellio, has acquired four hotels in Milan, expanding its presence beyond offices in a city where it already has a strong footprint.

The Milan acquisition adds four hotels to Covivio’s portfolio in Italy’s financial and business hub. The assets are located in established districts with strong transport connections, serving both business and leisure demand.

The hotels are operated under 21-year lease agreements with a hybrid rent structure. These include a minimum guaranteed rent and a variable component linked to revenue performance. The structure provides a minimum yield of 6%, with a target yield of around 7% including variable rent.

The transaction strengthens Covivio’s position in Milan, where it already manages two flex office buildings under the Wellio brand.

The move comes as Covivio develops expertise in repositioning assets across sectors, including converting office buildings into hotels. The company has several such projects underway, targeting underutilized or end-of-life office assets in central urban locations.

“Office real estate trends have also changed significantly, with a much greater emphasis on services and elements that didn’t exist ten or fifteen years ago. Consequently, some properties can remain as offices if, after renovation and repositioning, they meet the new expectations of employees and their companies. However, for others, we must consider alternative uses,” said Sébastien de Courtivron, Deputy Managing Director of Covivio Hotels, in an article on office-to-hotel conversion projects.

This approach is also visible in Paris, where Covivio is progressing the Boulevard Raspail project, involving the repositioning of an office asset in the French capital’s central business district.

Covivio, founded in 1998, manages a diversified portfolio across offices, residential, and hotels in Europe, with core markets in France, Italy, and Germany. Wellio operates as Covivio’s flexible office platform, offering serviced offices, coworking, and meeting spaces targeting corporate users. The company operates eight locations in major French cities, including Paris, and two in Milan, with a focus on premium, service-led environments.

Pic Source: covivio.eu