Demand for high-end hotels is surging, with recent transactions signaling a robust market for luxury properties, particularly in Istanbul and along the Turkish coast.
The Les Ottomans Hotel in Istanbul’s Kuruçeşme district was recently acquired by Serdar Bilgili’s BLG Capital for $75 million, including all outstanding debts, according to reports. The hotel was previously owned by Ünal Aysal, former president of Galatasaray. The acquisition resolves a $75 million debt owed by Aysal to Akbank.
Les Ottomans Hotel, built on the site of the historical Muhsinzade Mehmet Paşa Yalısı, a mansion dating back to 1790, features Ottoman-style gardens and is considered one of Turkey’s most luxurious hotels. The property underwent extensive restoration and reopened in 2006.
In a separate transaction, AYS Otelcilik, which is preparing for a public offering through AYS GYO, has transformed two historical buildings in Istanbul’s Sirkeci district into luxury hotels. The company is similarly making a significant push into the food and beverage sector with Roof Mezzopotamia, as reported by Turizmekonomi.com. This move reflects a broader trend of revitalizing historical structures for upscale hospitality ventures.
The luxury hotel sector has also seen unexpected events impacting operations. A recent incident at a luxury hotel in Alanya involved an “unimaginable event” that disrupted guest stays, Yeniçağ Gazetesi reported. The same publication noted an incident involving Adriana Lima at a luxury hotel. Previously, the Sanasaryan Han, a historical building in Turkey, was known as a torture center but has since been converted into a luxury hotel.
These transactions and developments underscore the growing appeal of luxury hospitality investments in Turkey, particularly in major cities like Istanbul and popular tourist destinations. The market’s performance suggests continued investor interest in high-end properties and a willingness to invest in both new developments and the restoration of historical landmarks.
