CBRE Hotels, acting on behalf of the owner of the Hilton Frankfurt City Centre hotel, has advised on the sale to new investors specializing in the luxury hospitality sector. The lease with Hilton remains in place.
The deal represents one of the largest independent hotel transactions in Frankfurt in the last 10 years and demonstrates that the German hotel market is now receiving significant external investment with stable yields and a robust German economy offering attractive investment opportunities for investors keen to achieve strong and sustainable long term returns.
Debt financing for the acquisition was provided by HSH Nordbank in excess of €50 million.
The 342-room hotel boasts 14 suites, approximately 1,435 m² of dedicated conference space, underground parking and state of the art leisure facilities including a 25-meter swimming pool and a Fitness First
fitness club. The hotel also offers an extensive food and beverage offering with a restaurant and two bars.
Philipp Kraneis, Senior Director, Head of Transactions Germany & CEE CBRE Hotels, commented: “Working closely with the existing owner, we completed this transaction in a mere two and a half months. CBRE is a global business, and we are ahead of the market in our understanding of future investors. This ensured we had immediate access to up to date, local market knowledge and could quickly identify interested, relevant parties.”
“The Hilton Frankfurt is a state of the art building positioned at the heart of the city center’s financial district. Its location, the fact that it has a lease with a high profile branded operator and the current strength of the hotel market all made this transaction an incredibly popular investment opportunity.”
The owner was legally represented by Reed Smith LLP and Marccus Partners Rechtsanwälte, HSH Nordbank by Taylor Wessing and the Buyer by Edwards Wildman, Brown Rudnick and Jung & Schleicher Rechtsanwälte.
Source: CBRE Hotels