The Julius Fund is offering investors exposure not just to the operating profits of its growing European network of luxury serviced residences, but also to the development returns. Rather than investing directly in stabilized properties, the fund acquires shares in Julius Meinl Living Plc, the company that’s developing and operating the network.
The fund requires a minimum investment of CZK 1 million with a five-year lock-up period. Investors through the fund invest in priority C-class shares and bonds of Julius Meinl Living Plc.
“We’re offering investors participation in the entire cycle – from acquisition through development and operations,” explains Robert Kohn, Member of the Supervisory Board.
It’s a strategy he thinks could prove attractive, going by what the company has achieved in Prague. Kohn says its flagship property, The Julius Prague, doubled in value. Its purchase and development cost of €52 million resulted in a €102 million valuation upon opening in late 2022. The 168-apartment property generated €10.3 million in revenues in 2023, and its value increased to €110 million within the first year of operation.
Kohn says that the concept bridges a gap between traditional hotels and serviced apartments, combining the comfort of home with the services of a luxury hotel. The fully equipped apartments feature a modern kitchen. This provides guests with the flexibility to enjoy a home-like dining experience, while also having the option to indulge in the hotel’s restaurant.
But one of the biggest strengths is operational efficiency, says Kohn. Traditional luxury hotels generally require a large team to support extensive service offerings, but this model is designed to be leaner, focusing on what really matters to guests. The result is a gross operating profit margin of over 50%. That’s well-above the typical 30–33% seen in standard five-star hotels.
“Occupancy at The Julius Prague is currently at 75%. About 15% higher than five-star hotels in the city,” Kohn adds. “On top of that, it also has one of the highest guest satisfaction scores in Prague.”
The company already operates in Prague and Budapest, with a new development underway in Bucharest. Future expansion targets Western European cities including Rome, London, and Barcelona. Kohn notes significant undersupply in the serviced residence sector. According to research he quotes, London suffers from a shortage of roughly 30,000 units.
While the development component introduces additional risk compared to traditional real estate funds, Kohn argues the model provides multiple paths to returns: market growth in hospitality, expansion in the undersupplied serviced residence segment, and value creation through development.
“When you transform older properties into luxury residences, you typically see value increases of 30-50%,” says Kohn. “Most developers keep this profit. The structure of fund allows to share it with our investors.”
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